Sri Lanka’s National Development Bank (NDB) has announced the engagement of Deloitte Touche Tohmatsu India to perform a forensic investigation into the recent fraud incident affecting the institution.
The purpose of this forensic investigation is to thoroughly analyze the details surrounding the fraudulent activities, focusing on any weaknesses in internal controls, oversight, and governance practices. Deloitte is set to provide its findings, including any preliminary updates and a comprehensive final report, directly to the Central Bank of Sri Lanka.
According to NDB, the decision to involve Deloitte Touche Tohmatsu India LLP was made in consultation with the Director of Bank Supervision at the Central Bank of Sri Lanka, following the regulatory body’s recommendations.
On April 6, NDB informed the Colombo Stock Exchange (CSE) about a significant fraud amounting to Rs. 13.2 billion that occurred within the bank. Remarkably, the bank’s external auditors for the 2025 fiscal year, Ernst & Young (EY), did not identify this fraudulent activity during their audit process.
In their Independent Auditor’s Report for the year concluding on December 31, 2025, EY had affirmed a “true and fair view” of the bank’s financial status.
