Sri Lanka has significantly strengthened its national security framework by placing renewed emphasis on Targeted Financial Sanctions (TFS), a critical mechanism used to disrupt the financing of terrorism and protect the integrity of the country’s financial system.
Targeted Financial Sanctions involve the imposition of specific restrictions on individuals or organisations suspected of involvement in terrorism or terrorist financing. These measures are designed to freeze both financial and non-financial assets, restrict access to banking and economic resources, and prevent designated persons or entities from exploiting the national financial system for any purpose.
In Sri Lanka, Targeted Financial Sanctions are implemented in line with United Nations Security Council Resolution 1373 of 2001 through Regulation No. 01 of 2012, enacted under the United Nations Act No. 45 of 1968. Once an individual, group, or organisation is designated through a Gazette notification issued under Regulation No. 01 of 2012, a legally binding Freezing Order comes into effect.
These orders result in the freezing of bank accounts, the suspension of financial transactions, and restrictions on the use, sale, rental, or transfer of assets, including land, vehicles, houses, jewellery, and other property.
The authority to impose Targeted Financial Sanctions rests with the Minister of Foreign Affairs, while the Secretary to the Ministry of Defence has been appointed as the Competent Authority for administrative and operational purposes. This arrangement highlights the importance Sri Lanka places on countering terrorism financing at the national level. All designations and freezing actions are carried out based on credible evidence and national security considerations.
Targeted Financial Sanctions play a vital role not only in preventing terrorism at its financial roots, but also in strengthening Sri Lanka’s financial system and ensuring compliance with international obligations under the United Nations framework and the Financial Action Task Force (FATF).
To enhance transparency, accountability, and public awareness, the Office of the Competent Authority has launched an official website, www.competentauthority.gov.lk, which provides public access to information on Gazette notifications and freezing orders.
As terrorism often operates through hidden financial networks and concealed assets, Sri Lanka’s strengthened legal and administrative framework for Targeted Financial Sanctions, combined with increased public access to information, reflects the country’s continued commitment to peace, stability, and national security, while encouraging citizens to remain informed and vigilant.
