Sniffing Accounts

The Sri Lanka Accounting and Auditing Standards Monitoring Board (SLAASMB) will kick off on endash site investigations of Pramuka Savings & Development Banks accounts later this week, Lanka Business Online learns.
Though both Central Bank and SLAASMB have regulatory oversight over accounts of commercial banks, there is no formal mechanism for sharing information or conducting joint investigations.rn

rnBoth bodies are formally backed by powers vested on them through Acts of Parliament, but SLAASMB is a newly created body with a short history and this is the first occasion for an issue of common interest to crop up.rn

rnObservers say the Pramuka case has thrown up shortcomings in the regulatory process where regulators do not share information.rn

rnThough Pramuka was once asked to republish its accounts by Central Bank, there is no record that such information was formally communicated to SLAASMB to act on as well.rn

rnIn the last set of published accounts, the auditors also hinted at a problem