Central Bank urged to Probe into Overseas Transfers Linked to Rs. 13bn NDB Fraud

By Kelum Bandara   

The Central Bank has come under pressure to explain how funds involved in the Rs. 13 billion fraud at the National Development Bank (NDB) were transferred overseas, an opposition MP said yesterday.   

National Democratic Front (NDF) MP Ravi Karunanayake told the *Daily Mirror* that, as a member of the Committee on Public Finance (CoPF), he would call on the Central Bank to investigate how such transactions had taken place.   

Public Security Minister Ananda Wijepala told Parliament on Tuesday that a large-scale fraud had been carried out through the illicit transfer of millions of US dollars out of the country. 

According to the Minister, investigations conducted by the Police, the Central Crime Investigation Bureau, the Financial Crimes Investigation Division, and Sri Lanka Customs have revealed that organised groups had registered numerous companies and used telegraphic transfers (TTs) to remit funds to foreign entities while falsely claiming to be importing goods.   

He said that part of the Rs. 13 billion allegedly stolen from NDB had also been routed overseas through this method.   

Mr.Karunanayake, who raised the issue in Parliament, said he would seek an explanation as to how such fraudulent capital flight could occur without detection.   

“I raised this matter with the Minister. I will question the Central Bank as to how this could happen. We are seeing money being stolen and sent overseas,” he said.