The Central Bank of Sri Lanka (CBSL) has announced that National Development Bank PLC (NDB), in consultation with CBSL, is finalizing arrangements to engage a leading international firm with overseas experts to conduct a comprehensive forensic audit into the recently disclosed internal fraud.
According to CBSL, the audit will not only examine matters directly related to the commission of the fraud but will also assess compliance failures in control, oversight, and governance during the period in which the fraudulent transactions occurred.
The audit is expected to commence shortly, with interim findings and the final report to be submitted directly to CBSL, which will actively engage with the auditors as necessary.
In parallel, CBSL has directed NDB to take immediate measures to strengthen its internal controls and governance processes, focusing on identified lapses.
NDB has also been instructed to commission an independent third-party review to evaluate the adequacy and effectiveness of its policies, procedures, systems, and internal controls.
CBSL emphasized that NDB continues to meet all regulatory requirements relating to capital and liquidity.
The regulator remains in close engagement with NDB’s Board, management, and other stakeholders, and stands ready to take further measures to safeguard depositors and ensure financial system stability.
CBSL further clarified that there is no evidence of any other regulated financial institution suffering losses due to the incident at NDB, urging the public not to be misled by contrary claims circulating in various fora. (Newswire)
