Opposition MP Ravi Karunanayake has raised concerns in Parliament over the accountability of the Central Bank of Sri Lanka following its statement that National Development Bank Sri Lanka remains stable despite a reported Rs. 13.2 billion fraud.
Responding to the Central Bank’s assurances, Karunanayake questioned whether the institution operates with undue immunity, particularly given its expanded independence and authority.
He noted that central bank officials are highly trained, well-compensated, and vested with significant regulatory powers over financial institutions. However, he questioned the effectiveness of these powers if major financial irregularities cannot be detected or prevented in advance.
Karunanayake also criticised the Banking Supervision Unit for its failure to identify or mitigate risks associated with large-scale frauds, and raised concerns about oversight of non-bank financial institutions that could pose risks to the public.
He further called for stronger accountability mechanisms, stating that in other countries, central bank governors would be summoned before Parliament and held directly responsible in such situations.
The MP also referred to past financial crises and controversies, arguing that there has been a consistent lack of accountability within key financial institutions.
He warned that such systemic failures ultimately affect ordinary citizens the most, emphasising the need for greater transparency, oversight, and responsibility within the financial regulatory framework.
