The Committee on Public Finance (COPF) has questioned the Central Bank of Sri Lanka over the financial fraud reported at NDB Bank, raising concerns over weaknesses in internal controls, audit mechanisms, and banking sector oversight.

The matter was taken up when the committee met in Parliament on Tuesday (05) under the chairmanship of MP Harsha de Silva.

According to a statement issued by Parliament, Central Bank officials informed the committee that the fraud had directly contributed to a decline in NDB’s share price and credit ratings.

COPF members questioned how the bank’s internal audit committee, external auditors, board audit committee, and the Central Bank’s Banking Supervision Department had all failed to detect the irregularities.

Central Bank officials told the committee that no unusual activity had been flagged during the period in which the fraudulent transactions had allegedly taken place.

The committee also raised concerns over the same audit committee members who served during the fraud period continuing in their roles and effectively overseeing investigations into their own conduct.

During discussions, COPF stressed the need for greater transparency in external audits and stronger accountability within banking institutions.

The committee also focused on outdated banking security standards, warning that existing technological safeguards were insufficient amid evolving cyber threats.

COPF emphasized the importance of maintaining minimum technology and regulatory standards across all banks and highlighted the need to introduce modern artificial intelligence-based systems to prevent future fraud and strengthen overall banking sector security.

Central Bank officials told the committee that discussions are currently underway on introducing new regulations to improve Fraud Management Systems across banks.

The meeting was attended by Deputy Minister Chathuranga Abeysinghe and several MPs, including Ravi Karunanayake and Shanakiyan Rasamanickam. (Newswire)

The post COPF questions Central Bank over NDB fraud, internal audit failures appeared first on Newswire.

National Development Bank PLC (NDB) has commissioned Deloitte Touche Tohmatsu India LLP to conduct a forensic review into the facts and circumstances surrounding the recent fraud incident, the bank disclosed in a filing to the Colombo Stock Exchange dated April 23, 2026.

The review, carried out in consultation with the Central Bank of Sri Lanka’s Director of Bank Supervision, will examine the fraudulent transactions as well as any lapses in controls, oversight, and governance. 

Deloitte’s findings, including interim updates and the final report, will be submitted directly to the Central Bank.

The disclosure follows earlier updates on April 2 and April 6, with NDB’s Board stressing its commitment to transparency and accountability to shareholders, depositors, customers, and stakeholders.

The move comes as NDB disclosed that an internal fraud involving certain employees was detected, with the estimated exposure amounting to approximately Rs. 13.2 billion. 

At the time, the bank said customer balances remain unaffected, and operations continue without disruption. 

Soon after, the Central Bank of Sri Lanka (CBSL) announced that 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.

As such, NDB has now commissioned Deloitte Touche Tohmatsu India LLP (“Deloitte”) to conduct a forensic review of the incident. (Newswire)

The post NDB commissions Deloitte for forensic review into fraud incident appeared first on Newswire.

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)

The post NDB faces global forensic audit as fraud probe escalates appeared first on Newswire.

The Central Bank of Sri Lanka says it has been informed by the National Development Bank PLC (NDB) of an internal fraud that could result in a significant financial loss, while noting that no customer accounts or deposits have been affected.

In a statement issued on 6 April, the Central Bank said it carried out a preliminary assessment of the financial impact based on information provided by NDB and is satisfied that capital adequacy and liquidity ratios remain above minimum regulatory requirements.

The Central Bank further noted that it will continue to monitor developments and take necessary measures, if required. It also stated that NDB would be able to access temporary liquidity support, if necessary, under existing provisions.

Earlier, NDB estimated the fraud exposure at approximately Rs. 13.2 billion, noting that the incident was limited to a specific operational area involving certain employees acting in collusion.

The bank also assured that customer balances remain secure and banking operations continue without disruption. (Newswire)

Full News Report

https://www.newswire.lk/2026/04/06/ndb-reports-rs-13-2-billion-fraud-exposure-customer-funds-unaffected/

The post Rs. 13.2 billion fraud at NDB : CBSL issues statement appeared first on Newswire.

The National Development Bank PLC (NDB) says the estimated loss from the recently reported fraud incident amounts to approximately Rs. 13.2 billion, while assuring that customer deposits remain unaffected and banking operations continue as normal.

In a corporate disclosure issued on 6 April, the bank said investigations determined that the fraud was confined to a specific operational area and involved certain employees acting in collusion. NDB said it is treating the matter with the highest urgency and is working with law enforcement authorities to recover the funds.

The bank said all implicated employees have been suspended and their system access revoked, while individuals connected to the fraud have been arrested. The affected operational unit has also been placed under separate oversight with revised reporting structures and enhanced access controls across the organisation.

NDB said that in the worst-case scenario, the incident would result in an unaudited loss after tax of approximately Rs. 4.0 billion for the quarter ended 31 March 2026, after making full provision for the maximum expected loss.

The bank further noted that it recorded a net profit after tax of Rs. 11.0 billion for the year ended 31 December 2025, with a Rs. 3.5 billion profit in the fourth quarter of 2025. NDB added that its total asset base of approximately Rs. 990 billion as at 31 March 2026 would be impacted by around 0.7 per cent due to the incident.

Despite the impact, the bank said its Common Equity Tier I, Tier I and Total Capital Adequacy Ratios will remain above the minimum regulatory requirements of 7.0 per cent, 8.5 per cent and 12.5 per cent, respectively.

NDB also said the Central Bank of Sri Lanka has been kept fully informed and has extended regulatory support and oversight to ensure adequate liquidity and capital, and maintain stability.

The Central Bank has further directed the bank to suspend the cash dividend payable to shareholders on 6 April 2026, while allowing the scrip dividend to proceed as planned.

The Board of Directors has also decided to appoint an independent forensic auditor to conduct a thorough review of the fraud, its causes and internal controls.

In a separate statement, NDB reiterated that customer balances remain intact and secure, with normal banking operations continuing without interruption. The bank urged the public to avoid speculation or spreading unverified information, adding that customers seeking clarification may contact their nearest NDB branch, relationship manager or customer service hotline on 011 744 8850. (Newswire)

The post NDB Reports Rs. 13.2 Billion Fraud Exposure; Customer Funds Unaffected appeared first on Newswire.

The National Development Bank PLC (NDB Bank) says customer deposits and operations remain unaffected after the bank identified fraudulent activity involving internal personnel acting in collusion with external parties.

In a statement, NDB Bank said it wishes to assure all customers and stakeholders that the situation has no impact on customer deposits, account balances, or the bank’s day-to-day operations, noting that all funds remain safe and secure while business continues as usual.

The bank said the matter has been reported to law enforcement authorities, with both internal and external investigations currently underway.

NDB Bank also said it is working closely with authorities to pursue recovery action against those responsible, adding that further details will be shared once verified information becomes available.

The statement follows an earlier disclosure to the Colombo Stock Exchange in which the bank revealed that it had detected a fraud involving certain employees acting in connivance with third parties, with preliminary estimates indicating a potential loss of around Rs. 380 million. The bank noted at the time that the final amount could be higher pending the outcome of investigations.

NDB Bank further said it is taking steps to strengthen internal controls following the incident and urged the public to avoid speculation or spreading unverified information.

Customers seeking clarification have been advised to contact their nearest NDB branch, call centre, or relationship manager for accurate information.

NDB Bank also reaffirmed its commitment to transparency, accountability, and maintaining the continued trust of customers and stakeholders. (Newswire)

The post Rs. 380 million fraud probe: NDB issues clarification appeared first on Newswire.

Visa, a global leader in digital payments, together with National Development Bank PLC (NDB Bank), has launched Card Present Connect (CPC), an in-person digital payment acceptance solution powered by Cybersource, Visa’s open payment platform that supports both online and offline transactions. As one of the leading global payment gateways within Visa Acceptance Solutions for businesses, Cybersource delivers secure payment processing that covers international card schemes. Through this collaboration, Visa extends a reliable payment solution to small and medium-sized businesses in Sri Lanka, making in-person card payments more efficient and secure via CPC.

This launch in Sri Lanka marks the first implementation of its kind in the Visa South Asia world. The new solution enables businesses to accept EMV chips, contactless, and mobile wallet payments using Android SmartPOS devices. For merchants, this means lower costs, faster onboarding, enhanced security, and access to both local and international customers – helping businesses compete globally and expand their presence across cashless economies.

For acquiring banks, this move delivers cost efficiency, faster go-to-market capabilities, and simplified deployment through Visa’s pre-integrated partner ecosystem. The solution eliminates the need for acquiring banks to build and maintain complex in-house payment infrastructure while ensuring full compliance and reliability.

Avanthi Colombage, Country Manager for Sri Lanka and Maldives, Visa, said, “We are pleased to partner with NDB Bank to bring yet another breakthrough solution by Cybersource, that can accelerate the growth trajectory of the Sri Lankan business community. For SMBs, traditional POS terminals can be expensive, complex, or tied to long-term contracts. This in-person digital payment acceptance solution bridges that gap by streamlining merchant onboarding, improving operational efficiency and reducing infrastructure dependency for acquiring banks. By helping NDB Bank expand from online to in-person acceptance, we are democratizing card acceptance and enabling merchants of all sizes with the tools, technology, and trust they need to thrive in an increasingly cashless economy. This collaboration reflects Visa and NDB Bank’s shared vision of advancing inclusive digital payments in Sri Lanka and building a financial ecosystem that sustains this agenda well into the future.”

Sanjaya Perera – Senior Vice President Personal Banking & Customer Experience at NDB, added, “Our expansion into in-person digital payments acceptance marks an important step in supporting local entrepreneurs and mid-market enterprises. With Visa’s global technology and NDB Bank’s strong local relationships, we are delivering the next generation of payment acceptance that is seamless, secure, and sustainable. This initiative empowers businesses with innovative solutions that simplify transactions, reduce operational costs, and enhance customer experience. Through collaborations like this, we reaffirm our commitment to driving financial inclusion and fostering economic growth for Sri Lanka’s vibrant business community.”

Together Visa and NDB Bank are redefining Sri Lanka’s acquiring landscape by democratizing card acceptance, enhancing merchant agility, and enabling faster, more inclusive access to digital payments across the country.

The post Visa and NDB Bank launch Card Present Connect to transform POS acceptance appeared first on Newswire.

The Ministry of Tourism has launched the ‘Travel Card’, which is a new facility initiated in view of the progress of the tourism industry. 

According to the Ministry, the signing of the Memorandum of Understanding between the Sri Lanka Tourism Development Authority (SLTDA) and the National Development Bank (NDB) on the initiative was held at the premises of the SLTDA today.

Those who have registered themselves as various service providers to the tourism industry under the SLTDA can obtain this card, which will make them eligible for special benefits when dealing with tourists. 

This will enable the provision of qualitative services such as having the number of tourists visiting Sri Lanka up-to-date, exchanging with a bank the foreign currency they bring with them, and enabling tourists to safely obtain goods and services within the country, the ministry revealed.

The Tourism Ministry added that tourists too can obtain a ‘Travel Card’ for their use in Sri Lanka. 

Many dignitaries participated on this special occasion of entering into the said agreement with the National Development Bank including Priyantha Fernando, the chairman of Sri Lanka Tourism Development Authority, Senior Deputy President of NDB Sanjaya Perera, Vice President Zeyan Hameed, Assistant Deputy Chairman (Cards) Ashan Wickramanayake and NDB Kollupiiya branch manager Kuraish Shafideen. (NewsWire)

The post New Travel Card for tourism industry appeared first on Newswire.