“Environmental, health and sanitation and entrepreneurial development CSOs are rated low risk ‘due to no evidence of terror financing abuse of these categories’.”

“Additionally, the RA states ‘These NPOs are not proximity (sic) to active terrorist threats as per views of sector experts due to the fact that most of the projects done by them can be physically verified’.”

“Relief and human rights NPOs are rated medium-low risk, yet, there is no evidence provided in the nine page report to substantiate the higher risk rating.”

“The report goes on to say, ‘The information collected transpired that the intelligence services are still monitoring several NPOs which carry out relief work in areas identified as high risk and NPOs formed for the purpose of safeguarding of human rights’.”

“The RA asserts that unnamed and an unknown number of ‘Sector experts are of the view that these NPOs could be susceptible to be abused for TF activities’.”

“The report reveals the Terrorism Investigation Division (TID) is investigating several NPOs of which 13% are human rights organisations, 80% work on education and training and 7% provide relief.”

“In February 2026, the NGO Secretariat issued Guidelines on Preventing Money Laundering and Terrorist Financing for NGOs in Sri Lanka.”

“The Guidelines identify NGOs receiving large donations and those operating in remote areas as risk factors.”

“Foreign donors are automatically deemed suspicious, which the Guidelines state demands enhanced due diligence by CSOs.”

“The Government has proposed amendments to the Convention on the Suppression of Terrorist Financing Act and the Financial Transactions Reporting Act, which it claims are to comply with FATF standards.”

“The Convention on the Suppression of Terrorist Financing Act for example defines terrorism broadly and categorises acts such as damage to property and disruption of an electronic system as terrorist acts, which does not align with internationally accepted parametres of what is deemed a terrorist act nor with the revised model definition of the UN Special Rapporteur on Protecting Human Rights and Countering Terrorism.”

“The amendment to the Convention on the Suppression of Terrorist Financing Act increases the period for which a police officer of the rank of Assistant Superintendent (ASP) and above is empowered to freeze assets from seven to fourteen days.”

“The proposed amendment to the Financial Transactions Reporting Act requires all banks to report all transactions above a certain as yet unspecified amount.”

“The proposed amendments state the FIU is ‘operationally independent and autonomous’ but make no mention of the oversight authority; it only states FIU’s annual report is to be handed to the (relevant) Minister.”

“The establishment of a National Committee consisting of various state actors and chaired by the Governor of the CBCSL ‘to coordinate and oversee the implementation of the national policy of Sri Lanka on Anti-Money Laundering, Countering the Financing of Terrorism and Financing of Proliferation of Weapons of Mass Destruction and provide necessary guidance in the formulation of such national policy’ is introduced in the amendment.”

“Section 29 A introduced in the amendment empowers the head of the FIU to make rules, which does not require the authorisation of any other entity.”