Opposition MP Ravi Karunanayake has raised concerns in Parliament over the supervisory role of the Central Bank of Sri Lanka in relation to a fraud reported at National Development Bank Sri Lanka.
Karunanayake alleged that billions of rupees had been illicitly transferred out of the country through the incident and questioned why regulatory authorities failed to detect the irregularities in time.
He noted that while ordinary individuals face strict scrutiny when transferring funds abroad, large sums—reportedly amounting to Rs. 12,800 million—had been moved without adequate oversight.
The MP further questioned the effectiveness of internal controls, audits, and regulatory monitoring, including whether the Banking Supervision Department acted under relevant provisions to identify the issue.
He also highlighted that the Central Bank, which manages the Employees’ Provident Fund (EPF), has investments in NDB Bank, raising additional concerns over governance and accountability.
According to the bank, a loss of approximately Rs. 13.2 billion has been confirmed due to fraudulent activities carried out by certain employees.
In response, the Central Bank stated that a preliminary assessment had been conducted based on information provided by NDB and that, despite the losses, key prudential indicators such as capital adequacy and liquidity remain above minimum regulatory requirements.
The matter has drawn increased attention to regulatory oversight and financial sector accountability.
