Police say ongoing investigations into the reported theft of Rs. 35 million from a state-owned bank in Horana have increasingly pointed towards an alleged internal financial fraud rather than an external robbery.

The Assistant Manager of the bank, who is currently being questioned under detention orders, was taken to the bank premises for further inquiries. During the exercise, he is reported to have provided a detailed statement on the alleged manner in which funds were misappropriated.

According to investigators, the suspect is alleged to have diverted bank funds over an extended period, primarily to cover interest payments on money borrowed from multiple individuals. The funds are also believed to have been invested in various private business ventures, including mining-related activities.

Police further state that the suspect, who was responsible for depositing cash into the bank’s ATM machines, is alleged to have consistently entered lower-than-required amounts into the system while retaining the difference for personal use. Investigators believe this practice continued over a long period.

Authorities say the alleged financial irregularities were not detected earlier due to the absence of a recent full-scale physical audit of the branch.

Investigations have also revealed allegations that the Assistant Manager engaged in informal lending activities and made significant personal expenditures, including spending on individuals known to him.

Police have confirmed that no evidence has so far emerged to support the claim that an external group carried out an armed robbery. Instead, investigators suspect the incident may have been falsely presented or orchestrated as a cover for internal misappropriation, allegedly involving staff members.

The Western Province North Crimes Division is continuing further investigations.