CBSL Orders Forensic Audit into NDB Fraud Case

The Central Bank of Sri Lanka (CBSL) announced that it is closely monitoring developments at National Development Bank PLC (NDB) following the disclosure of an internal fraud.

CBSL confirmed that NDB, in consultation with the regulator, is finalizing arrangements to engage a leading international firm to conduct a comprehensive forensic audit. The audit will not only investigate the fraudulent transactions but also examine compliance lapses in regulatory oversight, governance, and internal controls during the period in question. Progress reports and the final findings will be submitted directly to CBSL, which will remain actively engaged with the auditors throughout the process.

In parallel, CBSL has directed NDB to strengthen its internal control and governance frameworks immediately. The bank has also been instructed to commission an independent third-party review to assess the adequacy of its policies, procedures, and systems.

Despite the incident, CBSL emphasized that NDB continues to meet all regulatory requirements relating to capital and liquidity. The regulator reassured depositors and stakeholders that the financial system remains stable, adding that there is no evidence of losses at other regulated institutions linked to the fraud.