The sister of Zahran Hashim, Mathaniya Mohammed Hashim, was arrested yesterday by Sri Lankan police.
Zahran, the leader of the now banned, National Thowheeth Jama'ath (NTJ), was responsible for the Easter Sunday bombing at the luxury hotel, Shangri-La.
Police reported that Rs 20 lakhs was found at Mathaniya's house in New Kathankudy.
Whilst the NTJ, which was supportive of Islamic State, was banned as a terrorist organisation following the Easter Sunday bombings, several reports have emerged that the group was linked to the former defence secretary, Gotabaya Rajapaksa and was funded by the Sri Lankan military.
Read more: NTJ paid by Sri Lankan intelligence, soldiers organised police murder - cabinet spokesperson