A deepening financial scandal rocks one of Sri Lanka’s leading banks, as internal fraud allegations point to insider collusion and potentially far greater losses than first revealed.
Sri Lanka’s National Development Bank has revealed that it has uncovered a significant internal fraud involving certain employees acting in collusion with external third parties, and the matter has now been formally referred to law enforcement authorities for criminal investigation and legal action.
In an official market disclosure, NDB stated that it is currently unable to determine the full scale of the financial fraud and is awaiting further clarity from ongoing criminal probes as well as internal investigations being carried out within the bank.
Initial estimates suggested that the losses could be around 380 million rupees, but the bank has now indicated that the total financial impact may be substantially higher than originally anticipated based on emerging findings.
Despite the seriousness of the situation, NDB assured its customers that all deposits, savings, and account balances remain completely secure, emphasizing that there has been no disruption to normal banking operations or services.
The bank also confirmed that it has informed the Central Bank of Sri Lanka and is working closely with regulatory authorities to ensure full transparency, accountability, and swift corrective action in response to the fraud.
NDB further stressed that all necessary steps will be taken to minimize any financial damage suffered by the institution while ensuring that those responsible for the fraud are identified and held fully accountable under the law.
While investigations continue, the bank stated that it will refrain from speculating on the final outcome or total losses until comprehensive reports are received from both internal and external inquiries.
Reassuring the public and its stakeholders, NDB emphasized its commitment to maintaining trust, transparency, and strong governance, adding that more detailed disclosures will be made once the full scope of the investigation becomes clear.
