The Criminal Investigation Department has arrested a fourth suspect in the internal financial fraud at National Development Bank (NDB), bringing the number of individuals in custody to four as the probe widens.
The latest suspect was scheduled to appear in court on Wednesday, NewsFirst reported. The investigation, led by the CID’s Computer Crimes Division, centres on the alleged misappropriation of Rs. 13.2 billion from the bank’s payments and settlements operations.
The primary suspect has been identified as an Assistant Manager in NDB’s Department of Payments and Settlements. He was taken into custody on April 1 and 2 along with his brother and another bank employee. The first three suspects, aged 33, 34 and 35, were remanded until April 14 following their initial court appearance.
The case is one of the largest internal banking frauds disclosed in Sri Lanka’s recent history. NDB’s own statement to shareholders has framed the impact as a roughly Rs. 4 billion after-tax loss, while EconomyNext’s investigation calculated a gross fraud quantum of Rs. 13.2 billion. The CID is using the larger figure as the basis for its prosecution.
The widening arrests come as Parliament begins to scrutinise the Central Bank’s supervisory role in detecting the fraud, and as CBSL Governor Nandalal Weerasinghe has used the case to renew calls for mandatory bank consolidation within two years.
