NDB says internal fraud was worth Rs. 13.2 billion in updated filing to Stock Exchange

National Development Bank (NDB) has estimated that an internal fraud detected last week was worth Rs. 13.2 billion.

In an updated filing to the Colombo Stock Exchange (CSE), NDB said that multiple employees have been suspended in relation to the fraud, with several involved individuals already arrested.

NDB first disclosed the fraud to the CSE on April 2, assuring its customers that all deposits and account balances remain safe and secure.

While not disclosing which department or unit was involved, NDB said that the affected operational unit had been placed under "separate oversight with new staff and revised reporting lines."

The bank has also appointed an independent forensic auditor to conduct a thorough and impartial review of the fraud.

It also stated that in a worst-case scenario, the bank's unaudited Loss After Tax for the quarter ending 31 March 2026 is estimated to be approximately Rs. 4 billion.

With an unaudited total asset base of approximately LKR 990.0 billion at March 31, 2026, it would be impacted by 0.7% due to this incident, NDB added.

The fraud has not impacted the bank's solvency and liquidity coverage ratios, it also added.

The Central Bank of Sri Lanka (CBSL) has directed NDB to suspend its scheduled cash dividend payment to shareholders, restrict discretionary payments, and suspend branch expansions — directives that come into immediate effect and remain in force until the CBSL specifically varies them.