FINANCIAL CHRONICLE – The Central Bank of Sri Lanka has conducted a thorough examination of all banking institutions to identify any fraudulent activities akin to those discovered at the National Development Bank (NDB), according to Governor Nandalal Weerasinghe.
The NDB recently disclosed a misappropriation of 13.2 billion rupees, amid claims of pervasive financial misconduct and the evasion of established internal controls.
Investigative efforts have concentrated on the unauthorized provision of credit and the alteration of accounting records, which facilitated significant fund transfers disguised as legitimate business transactions.
This incident has sparked considerable alarm regarding corporate governance and the effectiveness of regulatory oversight in the banking industry. Questions arise over how such a large sum could be misappropriated without raising immediate red flags with regulators.
In an interview with FINANCIAL CHRONICLE on Wednesday, Weerasinghe stated, “We have instructed all banks to verify if they have experienced similar incidents.” He confirmed that no other banks have reported any fraudulent activities.
Following the revelations at NDB, there has been a heightened demand for accountability and more rigorous monitoring by the Central Bank of Sri Lanka. This is aimed at protecting the integrity of the financial system and preventing future occurrences of such white-collar crimes that could jeopardize the nation’s economic stability.
The NDB has assured that the funds belonging to depositors remain secure and clarified that the misappropriated funds originated from one of its internal accounts. (Colombo/May 13/2026)
