NDB Fraud: Questions Beyond Internal Failures

21 April 2026 12:08 am Views - {{hitsCtrl.values.hits}} 6 Bookmark

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The reported Rs.13.2 billion fraud at NDB Bank highlights a serious breakdown of internal controls. Responsibility must primarily rest with the bank’s management structure —ranging from junior accounting staff to the CFO, internal audit, board audit committee, and even reputed external auditors. Such a multi-layered failure is deeply concerning. While it may be argued that the Central Bank of Sri Lanka cannot be held directly responsible for this debacle, it is equally important to examine the effectiveness of its supervisory role. Bank examinations, reportedly limited to annual visits lasting a few weeks, raise questions as to whether such periodic oversight is adequate in today’s complex banking environment. Effective supervision requires not only time but also deep, practical expertise in commercial banking operations — an area where concerns have been expressed.

Upali Weerasinghe

Comments - 6

MirakRajBanda Tuesday, 21 April 2026 08:08 AM

External Auditor was too busy advising to the president.

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Ruwani Tuesday, 21 April 2026 07:10 PM

External auditors are responsible only for the audits provided by the information given by the bank. Not a single external audit firm provides forensic audits on any given bank. And if you think the head partner is going to sit

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Jerome Tuesday, 21 April 2026 05:19 PM

Are the board of directors of NDB still the same?

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Sam Wednesday, 22 April 2026 09:24 AM

Banks are not only facing operational fraud due to lax managerial attitude but also due to a change of operational systems, Banks encounter huge losses.Becouse I am writing this with my own experience, I worked in a leading bank in dubai. I was assigned to monitor and supervice treasury operational back office settlements. Due to change of operational management heads the guy recruited people from his own country and they had no treasury knowledge,neither did they had banking knowledge. Ultimately one of the arab guy wanted a sophiscated system for treasury but the system was a utter failure and trades are captured the opposit ways. When I pointed out the failures in the systems and the lack of knowledge the people had in the department the whistle blower became the target and not the system nor the uneducated lot. So this is the plight of all banks in todays world. God bless the depositor's and the owners of the banks Thanks Yours truly A banker

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Jude Wednesday, 22 April 2026 04:46 PM

Board of Directors must be held accountable

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D j kuma Friday, 24 April 2026 09:33 AM

Ey external auditors.who is becoming monopoly involved most of bank audits. Highly doubtful how other bank in different style of fraud could be or may not seen yet. Now days even internal staff of many banks even giant companies experiencing different kind of frauds. Starting from a driver to top mgmt. Even in PLC .some balance sheet publicly presented it's clear there is so many grey area. Hope all aware what happen to Golden key , ceylinco, on 2019 NSB bank recently another private bank in gampha. It's good to review as case study.

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