Several arrested over internal fraud at NDB Bank
April 8, 2026 12:45 pm
Police have arrested several individuals, including a manager of the National Development Bank (NDB), in connection with an internal financial fraud at the institution.
According to the Police Media Division, the suspects have been handed over to the Criminal Investigation Department (CID) for further inquiries.
In an official statement, NDB Bank assured customers that the incident has not affected any client accounts or deposits, adding that all banking services continue to operate without disruption.
The bank revealed that the fraud was confined to a specific operational unit and involved a limited number of employees. The implicated staff members have been immediately suspended following the discovery, while all relevant evidence and records have been secured.
The affected division has since been placed under heightened supervision, with the bank strengthening its internal controls, reporting mechanisms, and security systems.
The NDB Bank estimated that, in a worst-case scenario, potential losses from the incident could amount to approximately Rs. 4 billion for the quarter ending March 31, 2026. Despite this, the bank emphasized that its overall financial position remains stable.
The bank reported a net profit of Rs. 11 billion for the 2025 financial year, with total assets reaching nearly Rs. 990 billion as of March 31, 2026.
The Central Bank of Sri Lanka has also been notified and is providing regulatory oversight and support. On regulatory advice, the cash dividend scheduled for April 6, 2026, has been temporarily suspended, while the proposed scrip dividend will proceed as planned.
Meanwhile, the Board of Directors has decided to appoint an independent forensic expert to conduct a comprehensive investigation into the matter.
Reaffirming its commitment to transparency and accountability, the NDB bank urged the general public to avoid spreading unverified information or speculation regarding the incident.
