Two men have been caught while transporting 5.5. kgs of gold by a dinghy boat off Karainagar, the Navy says.
During a joint search with the Coast Conservation Department, the Navy detected the suspicious boat and searched it.
The gold was found concealed in four parcels.
The suspects, aged 30 and 32 years, and the gold have been handed over to the Jaffna Customs office for investigation.