Sri Lanka has strengthened its national security and counter-terrorism financing framework with renewed focus on Targeted Financial Sanctions (TFS), the Ministry of Defence said.

Targeted Financial Sanctions are restrictive measures imposed on individuals or entities suspected of involvement in terrorism or the financing of terrorism.

These measures are intended to freeze assets, limit access to financial systems, and prevent designated persons or organizations from conducting any form of financial activity within the country.

In Sri Lanka, the implementation of TFS is carried out in line with United Nations Security Council Resolution 1373 (2001), under Regulation No. 01 of 2012 made pursuant to the United Nations Act No. 45 of 1968. Once a designation is published through a Gazette notification under the said regulation, a legally binding freezing order comes into effect. This results in the immediate freezing of bank accounts and restrictions on the use, transfer, sale, or leasing of movable and immovable assets, including property, vehicles, jewellery, and other valuables.

The Ministry further noted that the authority to impose Targeted Financial Sanctions rests with the Minister of Foreign Affairs. The Secretary to the Ministry of Defence has been appointed as the Competent Authority responsible for administrative and operational implementation. Officials said this arrangement reflects the importance placed on countering terrorism financing at the national level, with all designations and freezing actions based on verified information and national security assessments.

Authorities emphasised that TFS forms a key component of Sri Lanka’s efforts to prevent the flow of funds to terrorist activities, while also strengthening the integrity of the financial system and ensuring compliance with international obligations under the United Nations framework and the Financial Action Task Force (FATF) standards.

To improve transparency and public access to information, the Office of the Competent Authority has launched an official website, www.competentauthority.gov.lk, where Gazette notifications and related freezing orders are made available to the public.

Officials further stated that terrorist financing often operates through concealed transactions and hidden assets, making financial monitoring and enforcement measures essential. Strengthening the legal and administrative framework for Targeted Financial Sanctions, they said, reinforces Sri Lanka’s commitment to national security, financial stability, and public awareness.