Rs. 13.2 Billion Fraud at National Development Bank; Central Bank

07-Apr-2026

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National Development Bank (NDB) has officially announced that a major internal fraud amounting to approximately Rs. 13.2 billion has taken place. The bank stated that the loss is significantly higher than earlier estimates and has disclosed the details to the Colombo Stock Exchange.

The bank said the fraud was confined to a specific operational division and involved a conspiracy by several employees. All employees connected to the incident have been immediately dismissed. Records have been secured and the relevant division has been placed under new supervision.

Efforts are currently underway to recover the funds with the support of law enforcement authorities. NDB also stated that an independent forensic audit will be conducted to investigate the incident and strengthen internal systems.

Meanwhile, the Central Bank of Sri Lanka issued a special statement, noting that an initial assessment has been carried out based on information provided by NDB. The Central Bank said it is satisfied that the bank’s capital adequacy and liquidity ratios remain above the minimum regulatory requirements.

As a precautionary measure, NDB has been directed to suspend its planned cash dividend payments and to control discretionary expenditure, including expansion of new branches. However, the bank has been permitted to continue issuing scrip dividends. The Central Bank further stated that it will provide support to ensure the bank maintains sufficient liquidity and capital, and that temporary liquidity assistance can be obtained if required.

Both NDB and the Central Bank assured the public that customer accounts, deposits and balances have not been affected, and that banking operations continue without disruption.