COLOMBO, Feb. 5 -- President Anura Kumara Dissanayake has warned state institutions that Sri Lanka must demonstrate effective governance at home before seeking international confidence, as the country prepares for a high-stakes review of its anti-money-laundering and counter-terrorism financing regime.

Speaking at a meeting at the Presidential Secretariat earlier this week, the president addressed senior officials from financial-regulatory and security agencies ahead of Sri Lanka's third mutual evaluation by the Asia Pacific Group on Money Laundering (APG), the regional affiliate of the Financial Action Task Force (FATF), scheduled for March.

The assessment, originally planned for last year but delayed by the 2024 elections, will scruti...