The recent NDB bank fraud scandal reveals major lapses in corporate governance within the bank and weak oversight on part of the Central Bank of Sri Lanka, the Committee on Public Finance has observed at its last meeting (7), a statement released by the CoPF says.

“The Committee observed with serious concern that there appear to have been considerable lapses in corporate governance at the bank, deficiencies in supervision by the relevant departments of the Central Bank of Sri Lanka, and undue delays in the reporting of material information.”

The alleged scandal, which involves approximately Rs. 13.2 billion, prompted the CBSL to freeze the bank’s cash dividends for April 2026 and other plans for expansion, as the breach in security indicated a major failure in regulatory compliance.

At present, the bank has appointed an independent forensic auditor to conduct an impartial review of the fraudulent activities carried out by several individuals, both external and internal to the bank, which included an assistant manager too.  

According to the statement released by the CoPF, the CBSL Governor informed the Committee that an initial investigation, on part of the CBSL, is currently underway. He further assured that the Central Bank will report back to the Committee at the earliest possible opportunity once the necessary information has been gathered.

The statement said that the Committee firmly stated that such shortcomings are unacceptable and directed that immediate corrective measures be undertaken. It further emphasised that it will continue to closely monitor this matter and exercise stringent oversight to ensure full accountability, transparency, and the safeguarding of public confidence in the financial system.

Central Bank of Sri Lanka (CBSL) Governor Dr. Nandalal Weerasinghe, along with members of the Governing Board, the Monetary Policy Board, and senior officials, attended the meeting as part of the Central Bank’s statutory presentation to Parliament conducted once every four months.