This official has allegedly accepted money and a Rolex watch worth Rs. four million to prevent the arrest of the mastermind in the scam, identified as Velvarajan.
He has had close connections with the top figures in the Sri Lankan company linked to the scam, including its director Krishna.
Police have received information this scam was taking place under the major pyramid scheme under Vijay Eswaran.
A resident of Maharagama is leading the local racket and the CID has investigated him.
Running pyramid schemes is an offence punishable under the money laundering act.
There is information that a solar unit produced in Athurugiriya is sold for Rs. 63,000 and the money thus earned was being sent to Malaysia.
Police believe certain officials of the Central Bank too, were involved in this.
The racketeers have sent letters to the CB, inquiring if their dealings were against the law, and then prevented the bank from sending them replies, in an attempt to show what they were doing was legal.
Plans have been made to get legal status for their racket with the support of a government minister, who is also well-known as a lawyer.