Sri Lanka, Aug. 21 -- An investigation into an alleged foreign exchange scam involving the transfer of approximately USD 1 billion overseas without corresponding imports was launched after police discovered a large amount of cash in a three-wheeler in Peliyagoda, a senior police officer said.

Western Province Senior Deputy Inspector General of Police Sajeeva Medawatta said the discovery was made during a routine police inspection and subsequently led investigators to uncover a suspected wider operation involving large-scale transfers of funds overseas through the banking system.

Speaking to a local media outlet, Medawatta said police initially became suspicious after finding several hundred thousand rupees inside the three-wheeler. Furt...