-By A Special Correspondent
(Lanka-e-News -10.June.2025, 11.00 PM) It begins like a thriller scripted in Colombo’s political backrooms and polished in the penthouses of Dubai—a trail of shell companies, a Maldivian resort, and a figure whose last name once adorned every state institution. But this is no fiction. According to a trove of confidential documents obtained by Lanka e-News and reviewed by The Sunday Times, startling claims have emerged: the son of a former Sri Lankan President—now a sitting nationalist Member of Parliament—is alleged to have made a jaw-dropping $200 million investment in Bitcoin.
This revelation, if verified, would rank among the most significant undeclared offshore holdings by a Sri Lankan public figure since independence. The implications are geopolitical, economic, and criminal.
A Vault Full of Secrets
The digital trail begins in Dubai, where a blockchain custody platform—registered discreetly via intermediaries in the Cayman Islands—reportedly facilitated the former First Son’s massive cryptocurrency transfer. This was not an investment made with the curiosity of a retail investor dabbling in new-age tech. This was vault-grade: high-security, ultra-anonymous, and allegedly backed by entities with no clear beneficial ownership trail.
According to internal memos leaked from a crypto asset management firm in Dubai, the investment was structured through two shell corporations that specialize in high-net-worth digital asset custody. One of the entities, Al-Safir Ventures Ltd, lists its directors as two proxy nominees residing in Panama. The other, Nolimit Holdings, has no operational office and exists only on paper.
Blockchain analytics confirm a bulk Bitcoin acquisition approximately 14 months ago—when the price hovered around $27,000 per coin. Today, Bitcoin trades north of $100,000, yielding a 400% gain. The portfolio, sources allege, is now worth well over $800 million.
The documents reviewed refrain from naming the individual directly. However, clues point unmistakably toward a well-known political heir, the son of a two-term Sri Lankan president whose regime was synonymous with both aggressive nationalism and massive state expenditure.
Now occupying a backbench seat in Parliament, this MP styles himself as a voice for traditional Sinhala values and Sri Lanka’s "sovereign digital future". Ironically, he has never once disclosed any interest in cryptocurrency investments. He has never filed a digital asset declaration with Sri Lanka’s Department of Inland Revenue.
In a country where the average public servant earns less than $400 a month, the optics of such clandestine wealth—let alone in unregulated crypto holdings—are staggering.
Where did the initial $200 million come from?
Investigators, both local and foreign, now suspect that the funds may have passed through a network of front companies tied to state-linked contracts during the presidency of this MP’s father. Several Sri Lankan companies that received government infrastructure tenders under opaque bidding processes are now under fresh scrutiny.
One such firm was awarded a $480 million urban redevelopment contract—never completed. Another, nominally in the tourism sector, invested in a now-abandoned luxury resort project in the Maldives. That resort, Coral Ember Retreat, received irregular offshore remittances totaling nearly $40 million, raising alarms at a Singapore-based correspondent bank that filed a Suspicious Activity Report (SAR).
Additionally, financial analysts have flagged a sports equipment procurement tender from the Ministry of Youth Affairs, inked during the MP’s time as an "unofficial advisor", as potentially part of the puzzle. Several commissions, some as high as 15% of the contract value, appear to have been routed to offshore trusts in Mauritius and Guernsey.
The dots, though circumstantial, increasingly connect.
Cryptocurrency offers unparalleled anonymity—perfect for those seeking to obscure wealth flows.
“Bitcoin was designed to be transparent. But with enough layering, shell companies, and multi-sig wallets, even the most advanced forensic firms struggle to trace beneficial ownership,” says Dr. Alastair Newton, a former risk analyst at the UK Foreign Office now advising on financial crimes at the LSE.
Sri Lanka’s Inland Revenue Department currently has no mandatory disclosure requirement for foreign-held cryptocurrency assets. This legal blind spot has made it an attractive refuge for politically connected individuals and businessmen seeking to shield wealth from taxation or scrutiny.
The Financial Intelligence Unit of the Central Bank has issued multiple private advisories urging legislation to demand disclosure of all digital assets held by Sri Lankan citizens, whether locally or abroad. But so far, no law has materialized.
With mounting speculation and digital breadcrumbs pointing to a high-level scandal, civil society groups and anti-corruption campaigners are demanding immediate action.
Dr. Nishan de Mel, head of Verité Research, warns: “It’s not enough to know that $200 million in Bitcoin may exist in the hands of a politician. We must ask how it got there. Was it stolen, laundered, or evaded from tax? The state cannot feign ignorance.”
He is calling for the Inland Revenue Department to issue a nationwide declaration directive—demanding every citizen disclose any cryptocurrency holding, domestic or foreign, before June 30.
“If you legalise silence, you legitimise crime,” he said.
The twin-shell structure—Dubai-based vault, Cayman-registered holding firms—is no coincidence. This is a classic architecture for those seeking “regulatory neutrality”.
One source within a Gulf compliance firm told The Sunday Times: “These structures are used by African oligarchs, Gulf royals, and increasingly, South Asian elites. The son of a former South Asian president would not be the first nor the last.”
Dubai’s lax oversight on digital asset platforms, combined with the Cayman Islands’ refusal to share beneficial ownership details unless compelled by international treaty obligations, forms a perfect firewall.
“Unless there’s political will from Colombo to send Letters Rogatory and mutual assistance requests, this money stays buried,” the source added.
Repeated inquiries to the MP’s office have gone unanswered. A parliamentary aide to the MP said: “He is not in a position to comment on speculative articles aimed at tarnishing his character.”
Sri Lanka’s Anti-Corruption Commission declined to confirm whether they had received a complaint or opened a file on the matter. The Governor of the Central Bank, however, said on Friday that “cryptocurrency investments are being monitored” and that the bank “welcomes the emergence of a legal framework.”
Meanwhile, international pressure may mount. The U.S. Department of Treasury, which has worked with South Asian nations in tracking terror financing, is reportedly monitoring the case due to potential AML (Anti-Money Laundering) violations involving dollar transactions.
Sri Lankans, still reeling from the 2022 economic collapse that saw fuel lines, food shortages, and mass protests, are unlikely to take news of another elite cash hoard lightly.
In 2022, protestors stormed the Presidential Palace and demanded accountability. In 2023, former ministers were found to have siphoned COVID-19 aid into overseas accounts. Now, a potential Bitcoin empire built on questionable capital is threatening to ignite public anger once more.
For activists like Sarala Fernando of Citizens for Financial Truth, the message is clear: “If we do not investigate this, we lose all credibility. We might as well say Sri Lanka is run by crypto-kleptocrats.”
This case may become the testbed for Sri Lanka’s next chapter in anti-corruption reforms. Calls are growing for:
Immediate passage of legislation mandating the declaration of digital asset holdings for all Sri Lankan citizens by June 30.
A forensic audit of offshore shell companies linked to past government tenders.
Parliamentary summons for the MP in question to disclose his financial interests.
Cooperation with Dubai and Cayman financial authorities under mutual legal assistance treaties.
The $200 million question remains: will Sri Lanka act?
Until then, one thing is clear—Bitcoin may be decentralised, but corruption always finds a centre.
-By A Special Correspondent
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by (2025-06-11 01:00:15)
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