Business · Sri Lanka Bureau
NDB Bank fraud loss pegged at Rs13.6 billion in completed forensic audit
An independent forensic investigation into fraud at NDB Bank has concluded with losses quantified at Rs13.6 billion. The findings come as the lender moves to strengthen internal controls and governance frameworks.
LSN Sri Lanka ·
A comprehensive forensic probe into fraudulent activities at NDB Bank has determined the total loss at Rs13.6 billion, according to findings released as the investigation concludes. The probe, conducted by international auditing firm Deloitte, represents one of the most significant fraud cases to impact Sri Lanka's financial sector in recent years.
The forensic examination identified systemic weaknesses in the bank's internal control mechanisms and governance oversight that enabled the fraudulent activities to persist. The investigation traced the flow of funds and identified key risk areas across operational and compliance divisions that failed to detect irregularities at earlier stages.
NDB Bank has committed to implementing comprehensive remedial measures, including enhanced due diligence procedures, strengthened whistleblower mechanisms, and reinforced segregation of duties across critical functions. The lender has also initiated disciplinary action against staff members identified as complicit in the fraud.
Regulatory authorities have been briefed on the findings as part of ongoing oversight of the financial sector. The case has prompted broader discussions within Sri Lanka's banking industry regarding standards for fraud prevention and the need for robust internal audit frameworks across institutions.
The bank's management has stated that it continues to maintain adequate capital levels and liquidity positions, with operational resilience remaining intact following the forensic audit's completion.