Customers Protected as NDB Takes Action on Internal Misconduct

COLOMBO (News 1st); The National Development Bank announced that no customer account balances have been affected by the internal financial fraud detected at the bank.

The bank emphasised that NDB continues to operate as normal and that all banking services are being provided without interruption.

Meanwhile, issuing a statement on the incident, the Central Bank of Sri Lanka said that NDB’s capital adequacy and liquidity ratios remain well above the minimum regulatory requirements.

What Is This Internal Fraud Incident?

During an internal investigation conducted by National Development Bank, a fraud amounting to Rs. 13.2 billion has been identified within certain divisions of the bank.

NDB stated that the fraud took place within one specific area of the Bank's internal operations and involved misconduct by certain employees in collussion with external parties.

At the initial stage of investigations, the fraud was identified as amounting to Rs. 380 million.

However, following a more comprehensive internal investigation conducted by the bank, the full scope of the activity was uncovered, revealing that the value of the fraud could increase to as much as Rs. 13.2 billion.

NDB announced that all employees identified as being connected to the fraud have been suspended from service, and their system access privileges have also been revoked.

The bank further stated that individuals involved in this activity have been taken into custody by the relevant authorities.

The division identified as being connected to the fraud has now been placed under separate supervision, and a new staff team has been appointed, with revised reporting lines.

Are Bank Deposits Safe?

NDB has announced that all deposits are safe. The bank stated that customers can continue to carry out their transactions with confidence, as they have done previously.

Have Any Customers Lost Their Money?

The bank said that no customer has suffered any financial loss.

As this incident is related solely to internal operations, there has been no impact on any customer accounts.

Can Customers Withdraw Money or Carry Out Transactions?

NDB has emphasised that all banking operations are continuing as normal.

The bank stated that there are no restrictions on withdrawals, fund transfers, or any other banking transactions.

Is the Bank Financially Stable?

NDB stated that the bank remains financially strong, well-capitalized and liquidity maintained at optimal levels.

The bank announced that it continues to remain above regulatory requirements and that, if assistance is required at any stage, it will be able to obtain support from the Central Bank.

NDB recorded a net profit of Rs. 3.5 billion in the fourth quarter ending December 31, 2025, while total profits for the financial year amounted to Rs. 11 billion.

The bank also stated that the value of its unaudited total assets, stands at approximately Rs. 990 billion.

What Does the Central Bank Say?

The Central Bank stated that NDB has informed it of an internal fraud and that the incident could result in a significant financial loss.

The Central Bank also said that NDB has advised that no accounts or deposits are at risk as a result of this incident.

The Central Bank added that it is continuing to monitor the situation closely and that, if necessary, NDB has the ability to access temporary liquidity under the Central Bank’s liquidity support schemes.