NDB Bank fraud reaches Rs. 13.6 billion following final audit

A final audit of NDB Bank has revealed that fraudulent transactions have caused a total financial loss of Rs. 13.6 billion, an increase from previous estimates. The audit, covering the period from April 1, 2016, to March 31, 2026, identified specific irregularities in Common Electronic Fund Transfer (CEFT) processing, core banking system user activities, and the management of access credentials.

The findings, which were discussed before Parliament’s Committee on Public Finance, highlight systemic governance failures and weaknesses in internal controls. Specific lapses were noted in transaction monitoring, daily account reconciliation, financial compliance, internal auditing, and operational risk management. While the scale of the fraud is significant, the audit confirmed that no customer accounts were affected.

The investigation involved findings from the Sri Lanka Accounting and Auditing Standards Monitoring Board and Deloitte Touche Tohmatsu India LLP. The revelation of such large-scale irregularities at an established institution is expected to draw increased scrutiny from the Central Bank of Sri Lanka as the country works to stabilize its financial sector.