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Recovering fraudulent NDB funds is a distant dream
By Duruthu Edirimuni ChandrasekeraView(s): Most of the Rs. 13.2 billion NDB Bank fraud money is unlikely to be recovered, senior banking officials said. “None of the authorities is affirmatively confirming the chances of recovering this cash,” an official told the Sunday Times Business. Since most of this money has been converted to cryptocurrency, the recallability of the cash has stopped. “Because of this, the money does not have any traceability, and it cannot be recovered,” another banker said. NDB officials declined to comment on this issue. However in the latest 1st quarter 2026 results released by the bank on Thursday, the bank’s Director/CEO Kelum Edirisinghe is quoted as saying that the bank continues to extend its fullest assistance to facilitate ongoing investigations and statutory processes including the pursuance of recovering the sums. The Securities and Exchange Commission (SEC) is probing all listed financial institutions for irregularity in reporting incidents relating to this fraud, which took place over 18 months. The SEC also interviewed the board of directors at NDB recently in connection with this fraud. The majority of the banks that the Sunday Times Business spoke to said that with whatever the funds that they acquired relating to NDB, triggered Suspicion Transaction Reports (STRs) and these were submitted to the Financial Intelligence Unit of the Central Bank (CB) which is the national agency responsible for receiving and analysing data related to suspicious financial transactions, acting as the central repository for reports on money laundering etc. When checked with the sources at CB, the Sunday Times Business found that whatever the STRs received was acted upon, targets and networks were identified and were sent to law enforcement authorities. Now, the Criminal Investigation Department is currently probing all these claims. Additionally, with the impending mutual evaluation (ME) of the Financial Action Task Force (FATF), Sri Lanka is facing a considerable risk of a bad report card in the wake of this fraud. The lack of regulatory oversight and serious governance issues relating to Domestic Systemically Important Banks (DSIB) may risk warnings by FATF, analysts warned. Hitad.lk has you covered with quality used or brand new cars for sale that are budget friendly yet reliable! Now is the time to sell your old ride for something more attractive to today's modern automotive market demands. Browse through our selection of affordable ...
Massive NDB Fraud Exposes Deep Failures In Oversight Systems
Sri Lanka’s banking sector is confronting one of its most serious internal fraud scandals in recent memory, as the crisis engulfing the National Development Bank (NDB) continues to widen. Despite mounting pressure, regulators have yet to appoint a Competent Authority, with the Central Bank of Sri Lanka appearing to delay intervention until forensic findings are finalized—likely to prevent destabilizing public panic. At the center of the controversy is a staggering Rs. 13.2 billion internal fraud, now under investigation by both regulators and law enforcement. While NDB leadership—Chairman Sriyan Cooray and CEO Kelum Edirisinghe—remains in place to maintain operational continuity, scrutiny over their oversight has intensified. Critics point to a controversial 96-hour delay in fully disclosing the fraud, raising questions about transparency and governance. Early audit findings reveal a methodical pattern: fraudulent transactions were executed during weekends in amounts just below the Rs. 5 million reporting threshold, effectively bypassing internal red flags. Investigators believe perpetrators accessed core banking systems using compromised login credentials belonging to senior officials, exposing alarming weaknesses in cybersecurity protocols. To ensure independence, NDB has engaged Deloitte Touche Tohmatsu India LLP to conduct a forensic audit, with results to be submitted directly to the Central Bank rather than through internal channels. This unusual reporting structure underscores the seriousness of the situation and concerns about internal accountability. Meanwhile, the Criminal Investigation Department has expanded its probe, identifying a network of nearly 60 suspects. Recent arrests include an external accomplice allegedly linked to laundering Rs. 390 million through cryptocurrency channels hinting at a sophisticated, cross-border financial operation. Authorities now estimate that Rs. 12.8 billion has already been moved offshore through layered electronic transfers, complicating recovery efforts. Financially, the fallout is already visible. NDB is projecting a Rs. 4 billion after-tax loss for the first quarter of 2026. Despite this, the Central Bank maintains that the institution remains solvent, citing liquidity ratios above required thresholds. However, the damage to investor confidence is evident: Fitch Ratings has downgraded NDB to ‘A-(lka)’ with a Negative Outlook, highlighting systemic failures in internal risk management. Regulatory res...
UPDATE 2-NDB fraud estimated at astounding Rs. 13.2 billion
The bank reported a net profit after tax of LKR 11.0 billion for the year ending December 31, 2025, with a Q4 2025 net profit of Rs. 3.5 billion. The unaudited Total Asset Base of the bank, which is approximately Rs. 990.0 billion as at March 31, 2026, would be impacted by 0.7 per cent. "The Central Bank of Sri Lanka has been kept fully informed.
Inside NDB Scandal: Cyber Breach, Billions Lost, Trust Shaken
As investigators peel back layers of the Rs. 13.2 billion fraud, new details suggest a highly coordinated operation that exploited both technological vulnerabilities and institutional blind spots. Regulators, led by the Central Bank of Sri Lanka, have so far resisted installing a Competent Authority to take control of the bank.
