The Central Bank of Sri Lanka has issued a formal public assurance that customer accounts and deposits at National Development Bank PLC remain safe and secure following the disclosure of an internal fraud estimated at Rs. 13.2 billion.
In a statement issued on April 10, the CBSL said assessments carried out so far indicate that NDB continues to operate with capital and liquidity levels well above minimum regulatory requirements. The regulator emphasised that the fraud incident has had no impact on customer accounts or deposits.
“The Central Bank maintains close and continuous engagement with the bank and relevant stakeholders, and stands ready to take any necessary measures to safeguard the stability of the bank and to protect the interests of depositors,” the statement said.
The assurance comes amid growing public concern following a series of escalating revelations about the fraud. The NDB board initially disclosed Rs. 4 billion in after-tax losses before independent reporting revealed the gross fraud quantum at Rs. 13.2 billion. Four suspects have been arrested by the CID, with remand hearings scheduled for April 14.
A parliamentary house committee has described the incident as a “serious breach” of the banking system, while opposition MPs have questioned CBSL’s own oversight role in allowing the fraud to go undetected.
The CBSL’s statement notably avoids addressing the governance questions raised in Parliament, focusing instead on the bank’s current financial health and the safety of depositor funds. Fitch Ratings has since downgraded NDB to A-(lka) with a Negative outlook, warning of further downgrade risk if capital buffers weaken further.
