The bank accounts of a pro-rebel Tamil charity were ordered frozen Monday as part of an illegal arms trading case that originated in the United States, the Central Bank of Sri Lanka said.
The freeze on Tamil Rehabilitation Organisation (TRO) accounts came after the charity, set up to help displaced Tamils in Sri Lanka, was implicated in a US investigation into attempts to buy surface-to-air missiles for the Tiger rebels.
The US two weeks ago filed charges against eight suspects accused of seeking weapons for the Tamil Tigers and attempting to bribe federal officials.
The Tigers have been outlawed as a terrorist organisation by the US since 1997.
"Since there is now grave doubt as to the purposes of these funds and there is a likelihood that these funds may be used for terrorist financing, investigations are currently in progress in this regard," the central bank said in a statement.
"Pending the conclusion of the investigations, the central bank has decided to suspend all transactions on the TRO accounts and to freeze the funds lying to the credit of such accounts."
The central bank said the freeze affected at least 75 million rupees (750,000 dollars) deposited with seven commercial banks, including two owned by the government.
"The TRO has not received any official notice on this matter from the Central Bank of Sri Lanka," the relief organisation said in a statement. "There has not been any request for information from the central bank or any notice of any investigation into TROs activities."
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