State-owned People's Bank has identified an exchange rate error within one of its remittance systems that resulted in certain customers receiving excess payments over a nearly three-year period, the bank announced.

The error, which affected one currency within a specific remittance system, occurred between May 2023 and March 2026. The bank stated that the issue has since been fully rectified and that the estimated financial impact of approximately Rs. 656 million has already been recognised in its financial statements during the same period.

Upon detecting the error, the bank initiated an internal review and strengthened relevant operational controls. The matter is currently being reviewed in consultation with regulatory authorities, including the Central Bank of Sri Lanka.

"The bank has also commenced the relevant recovery processes in respect of the affected transactions and made progress with its recovery from the respective customers," the bank said in a statement.

People's Bank moved to reassure customers and stakeholders that its day-to-day operations, digital platforms, and customer services continue to function normally without interruption. The bank emphasised that given its strong financial position and asset base of approximately Rs. 3.8 trillion, the error has no material impact on its overall financial stability, profitability, or the safety of customer funds and deposits.

Based on current assessments, the bank said no further financial impact is anticipated from the matter.