State bank official sentenced to 35 years for 130 million rupee fraud

A 31-year-old chief cashier at a leading state bank has been sentenced by the Homagama High Court to 35 years in prison for the fraudulent misappropriation of over 130 million rupees (13 crore). High Court Judge Krishanthi Amarathunga ruled that the sentence is to be served concurrently within a 15-year period.

The investigation, launched by the Police Financial Crimes Investigation Division in May 2025, revealed three primary charges. The accused admitted to crediting over 13 crore rupees of bank funds to his personal account, including 11 crore rupees transferred to an account at the bank's Dehiwala branch. Additionally, the official used the bank's computer software to convert legitimate customer funds into fictitious entries.

The case has raised significant questions regarding the internal controls and supervisory procedures of the financial institution, specifically how a single employee was able to manipulate transactions and bypass reconciliation and audit protocols for such a substantial amount.