The Committee on Public Finance (COPF) has questioned Central Bank of Sri Lanka officials over the financial fraud at NDB Bank, telling regulators that every layer of audit and supervisory oversight failed to detect the irregularities, Newswire reported.
The committee, chaired by MP Harsha de Silva, took up the matter at a parliamentary sitting on Tuesday, May 5. CBSL officials told members the fraud had directly contributed to a fall in NDB’s share price and credit ratings, including Fitch’s earlier downgrade of the bank’s National Long-Term Rating.
According to a statement issued by parliament, COPF members questioned how NDB’s internal audit committee, external auditors, board audit committee, and the Central Bank’s own Banking Supervision Department had all failed to flag the fraudulent transactions. CBSL officials replied that no unusual activity was detected during the period in which the fraud allegedly took place.
Members also raised concerns that the same audit committee members who served during the period of the fraud are continuing in their roles — effectively overseeing investigations into their own conduct.
The committee called for greater transparency in external audits, stronger accountability inside banking institutions, and the introduction of artificial intelligence-based fraud management systems. CBSL officials said discussions were under way on new regulations to upgrade fraud detection across the sector.
Deputy Minister Chathuranga Abeysinghe and MPs including Ravi Karunanayake and Shanakiyan Rasamanickam attended the meeting.
The session is the latest in a chain of parliamentary scrutiny of the NDB case. The bank previously extended forensic-audit cooperation to an international firm, and earlier hearings had explored whether the fraud touched other banks or NBFIs.
