The National Development Bank (NDB) that recently made a disclosure on an internal fraud on an estimated Rs. 13.2 billion, in consultation with the Central Bank of Sri Lanka, is making an effort to finalise on engaging international experts to conduct a comprehensive forensic audit, a CBSL statement said.

“CBSL wishes to inform the public that NDB in consultation with CBSL is finalising arrangements to engage a leading international firm with experts from overseas to conduct a comprehensive forensic audit into the incident. The scope of this audit will, apart from matters directly related to the commission of this fraud, also assess any failures on compliance with regulatory requirements on control, oversight and governance during the period in which the fraudulent transactions took place.”

Accordingly, the forensic audit is expected to commence shortly, and its progress, including any interim findings as well as the final report, will be submitted directly to CBSL who will directly engage with the auditors to the extent considered necessary.

In parallel, the CBSL has directed NDB to take immediate measures to strengthen its internal controls and governance processes, with particular focus on addressing identified lapses. NDB has also been required to commission an independent third-party review to assess the adequacy and effectiveness of its policies, procedures, systems, and internal controls.