NDB Bank fraud in Sri Lanka

A forensic investigation and final audit of NDB Bank in Sri Lanka have confirmed a massive fraud totaling approximately 13.6 billion rupees. The investigation, which included findings from Deloitte, covered the period from April 1, 2016, to March 31, 2026.

The audit identified specific irregularities involving Common Electronic Fund Transfer (CEFT) processing, core banking system user activities, and the management of access credentials. These findings highlighted systemic governance failures and weaknesses in internal controls, specifically regarding transaction monitoring, daily account reconciliation, financial compliance, internal auditing, and operational risk management.

While the scale of the misappropriation is significant, the audit confirmed that no customer accounts were affected. Legal proceedings are underway against those responsible, and the bank is exploring options to reclaim funds through international agencies. The matter has been reported to law enforcement and discussed before Parliament’s Committee on Public Finance, drawing increased scrutiny from the Central Bank of Sri Lanka.