# State bank fraud and sentencing in Sri Lanka

> Live situation record from CLSTR: https://clstr.news/situations/state-bank-fraud-and-sentencing-in-sri-lanka
> Updated: 2026-10-10T01:28:00.000Z. Sources: 7. Developments: 2.

A chief cashier at a leading state bank in Sri Lanka has been sentenced to 35 years in prison by the Homagama High Court for the fraudulent misappropriation of over 130 million rupees. 

Following an investigation by the Police Financial Crimes Investigation Division, the accused admitted to crediting bank funds to a personal account and using bank software to convert legitimate customer funds into fictitious entries. The ruling, delivered by High Court Judge Krishanthi Amarathunga, specifies that the sentence is to be served concurrently within a 15-year period. The incident has prompted scrutiny regarding the institution’s internal controls and its ability to prevent single employees from bypassing audit protocols.

## Timeline

### 2026-10-10: State bank official sentenced to 35 years for 130 million rupee fraud

A state bank chief cashier has been sentenced to 35 years in prison (to be served concurrently within 15 years) for embezzling over 130 million rupees through fraudulent transfers and software manipulation.

2 sources. https://clstr.news/cluster/state-bank-official-sentenced-to-35-years-for-130-million-rupee-fraud

### 2026-09-26: SBI Chief Manager jailed for ₹61 lakh fraud in Mysuru

A former SBI Chief Manager in Mysuru has been sentenced to one year in prison for misappropriating over ₹61 lakh from a deceased customer's account and the bank's internal funds.

5 sources. https://clstr.news/cluster/sbi-chief-manager-jailed-for-61-lakh-fraud-in-mysuru

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Cite as: State bank fraud and sentencing in Sri Lanka. CLSTR, https://clstr.news/situations/state-bank-fraud-and-sentencing-in-sri-lanka