FINANCIAL CHRONICLE – The Governor of Sri Lanka’s Central Bank, Nandalal Weerasinghe, announced that a thorough examination of all banking institutions was conducted to identify any fraudulent activities similar to those reported at the National Development Bank (NDB).
The NDB disclosed a misappropriation totaling 13.2 billion rupees, accompanied by allegations of systemic financial misconduct and the evasion of established internal controls.
Investigators are looking into the unauthorized granting of credit facilities and the alteration of accounting records that enabled substantial fund withdrawals disguised as legitimate business transactions.
This incident has raised alarming questions regarding corporate governance and the effectiveness of regulatory oversight in the banking sector, particularly in relation to how such a significant amount could be misappropriated without immediate detection by regulatory authorities.
Weerasinghe stated in an interview with FINANCIAL CHRONICLE on Wednesday, “We requested that all banks verify if any similar incidents have occurred.” He confirmed that no other banks reported any fraudulent activities.
In light of the findings from the NDB, there has been a growing demand for enhanced accountability and stricter regulatory measures by the Central Bank of Sri Lanka to protect the integrity of the financial system and prevent the recurrence of such financial misconduct that could jeopardize national economic stability.
The NDB has consistently assured that depositors’ funds remain secure and that the misappropriated amount originated from one of the bank’s own accounts. (Colombo/May 13/2026)
