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Auditor General Blasts NSB for Risky $9M Loan to Maldivian Tourism Firm

Editor June 8, 2025

The National Savings Bank (NSB) has come under intense scrutiny following the Auditor General’s revelation that the...

NSB extends $9 million loan to Maldives company without looking into it – even extending grace period while it was still in place The Auditor General has slammed the National Savings Bank for extending a $9 million loan to a private tourism company in the Maldives. It is said to be a move that violates the bank’s legal mandate. The loan, which is currently classified as non-performing, was issued without proper risk assessment and has yet to be repaid. This raises serious issues about the regulatory oversight and control of the state-owned savings bank. The loan was made to RPI Private Limited in the Maldives in 2018, the Auditor General’s latest report revealed. The borrower has not paid any principal repayments or outstanding interest of $4.18 million as of May 31, 2024. The National Audit Report revealed that the loan was provided to this foreign company operating under the tourism industry for the construction of villas and this did not fall within the scope specified in the National Savings Bank Act. The provision of loans for construction work to a private company engaged in the tourism industry in a foreign country was an area not covered by the National Savings Bank Act and the audit did not uncover evidence that a comprehensive credit assessment or risk assessment was carried out before the loan was granted. The initial grace period of one year provided by the bank for the repayment of the capital after the loan was granted has been extended from time to time until 2022. Although it is a foreign company not covered by Circular No. 5 of 2020 issued by the Central Bank, the bank had provided loan relief under that circular, but the borrower company had not made any capital repayment until 31 December 2023. The loan was classified as non-performing at the end of the year and no field inspection by an independent party regarding technical skills and competence has yet been conducted, the audit report indicated. Of the total loans and advances, Rs. 3,800 million was foreign loans, the total value of which was included in the $9 million loan provided to this private company in the Maldives and the accrued interest calculated on it as of December 31, 2023. The National Savings Bank’s asset base recorded a slight increase from Rs. 1,687 billion at the end of 2023 to Rs. 1,710 billion at the end of October 2024. The bank’s deposit base increased by 2.2 percent.

Empty Promises: State Bungalows Still Idle Months Later

Editor June 8, 2025

Despite sweeping pre-election pledges to break from the past, the National People’s Power (NPP)-led government has yet...

SJB Draws Battle Lines: Demands Open Vote for Mayors, Threatens Disciplinary Action

Editor June 8, 2025

The Samagi Jana Balawegaya (SJB) is tightening internal discipline as it takes a firm stand against backroom...

IMF Power Play: Top Officials Head to Sri Lanka to Monitor Electricity Tariff Hike

Editor June 8, 2025

In a high-stakes visit that could impact Sri Lanka’s economic trajectory, IMF Deputy Managing Director Geeta Gopinath...

Sri Lanka Cornered: Modi’s Ultimatum on Provincial Council Elections

Editor June 8, 2025

In a diplomatic nudge that could reshape Sri Lanka’s internal political timeline, Indian Prime Minister Narendra Modi...

Yahapalana’s Rs. 1,750 Million Dairy Cow Scandal Surfaces

Editor June 8, 2025

A staggering Rs. 1,750 million dairy cow import scandal from the so-called “Good Governance” Yahapalana era has...

JVP MP and Wife Took Rs. 3 Million from President’s Fund

Editor June 8, 2025

In a revelation that could shake public trust in Sri Lanka’s self-proclaimed clean-hands politicians, opposition MP Dayasiri...

Hospitals Can’t Fix It All: Sri Lanka Shifts Focus to Prevention Over Treatment Hospitals Can't Fix It All: Sri Lanka Shifts Focus to Prevention Over Treatment

Hospitals Can’t Fix It All: Sri Lanka Shifts Focus to Prevention Over Treatment

Editor June 8, 2025

In a bold move to reframe public health priorities, Sri Lanka is turning its attention away from...

Sri Lanka’s Veggie Bill Soars: Rs. 37.5 Billion Spent in Just 3 Months

Editor June 8, 2025

Sri Lanka’s vegetable import bill has surged dramatically in the first quarter of 2025, with the Central...

Nothing Suspicious in 323 Released Containers – Customs Promises Full Disclosure Nothing Suspicious in Container 323, Customs Says—Full Disclosure Promised

Nothing Suspicious in Container 323, Customs Says—Full Disclosure Promised

Nothing Suspicious in 323 Released Containers – Customs Promises Full Disclosure

Editor June 8, 2025

Customs Media Spokesperson and Additional Director General Seevali Arukgoda has stated that there is no truth to...

Sri Lanka

Auditor General Blasts NSB for Risky $9M Loan to Maldivian Tourism Firm

Empty Promises: State Bungalows Still Idle Months Later

SJB Draws Battle Lines: Demands Open Vote for Mayors, Threatens Disciplinary Action

IMF Power Play: Top Officials Head to Sri Lanka to Monitor Electricity Tariff Hike

Sri Lanka Cornered: Modi’s Ultimatum on Provincial Council Elections

Yahapalana’s Rs. 1,750 Million Dairy Cow Scandal Surfaces

JVP MP and Wife Took Rs. 3 Million from President’s Fund

Hospitals Can’t Fix It All: Sri Lanka Shifts Focus to Prevention Over Treatment

Sri Lanka’s Veggie Bill Soars: Rs. 37.5 Billion Spent in Just 3 Months

Nothing Suspicious in 323 Released Containers – Customs Promises Full Disclosure

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