National Development Bank PLC has appointed Deloitte Touche Tohmatsu India LLP to carry out a forensic review of the Rs.13.2 billion fraud disclosed earlier this month, the bank said in a corporate disclosure to the Colombo Stock Exchange on Thursday.
“The Board has now commissioned Deloitte Touche Tohmatsu India LLP (‘Deloitte’) to conduct a forensic review of the facts and circumstances relating to the fraud incident,” NDB said.
The review will examine “the circumstances surrounding the fraudulent transactions, including any lapses in controls, oversight and governance”, the bank added. Its findings — including interim updates and the final report — will be submitted directly by Deloitte to the Central Bank of Sri Lanka.
The commissioning was carried out in consultation with, and in line with recommendations provided by, the Director of Bank Supervision of the Central Bank, NDB said. The CBSL had earlier ordered the bank to engage an international firm, separate from its statutory auditors, to lead the review.
NDB disclosed the Rs.13.2 billion fraud to the CSE on 6 April. Ernst & Young, the bank’s external auditors for 2025, failed to detect the fraud during the audit cycle and issued a “true and fair view” of NDB’s financial position in its Independent Auditor’s Report for the year ended 31 December 2025.
The appointment comes as Fitch Ratings has downgraded NDB, and the Central Bank has said no other banks or non-bank financial institutions are impacted.
Source: EconomyNext.
