Ravi Karunanayake has written to Anura Kumara Dissanayake requesting an independent international forensic investigation into alleged fraud, negligence, and systemic weaknesses connected to National Development Bank.
In the letter, Karunanayake alleges that the Central Bank of Sri Lanka, as the country’s primary financial regulator, failed to properly ensure:
- Regulatory compliance
- Risk monitoring
- Effective supervisory oversight
The MP further claimed that the alleged fraudulent transactions may have caused losses in government tax revenue and stressed that such losses should be:
- Promptly identified
- Quantified
- Recovered
Key Requests Made in the Letter
Karunanayake called for:
- The appointment of an internationally recognized independent forensic investigation team
- A probe free from vested interests and political or institutional bias
He also suggested seeking technical assistance from several international financial and regulatory institutions, including:
- Reserve Bank of India
- Bank of Japan
- Bank of England
- Monetary Authority of Singapore
- Central Bank of Malaysia
Concerns Over Regulatory Failures
The MP also urged authorities to expand the investigation to examine:
- Alleged regulatory lapses by the Central Bank
- Weaknesses in technical systems
- Failures in capital market supervision
- Accountability mechanisms under the Central Bank of Sri Lanka Act No. 16 of 2023
The letter further questioned the effectiveness of the Central Bank’s “Fit and Proper” criteria for banking oversight, particularly highlighting concerns regarding:
- The lack of core banking experience among some bank audit committee members
Karunanayake additionally recommended:
- Officially informing the International Monetary Fund about measures being taken to strengthen financial sector governance
He stated that the Committee on Public Finances stands ready to assist the process and has already contributed toward identifying independent professional institutions for possible involvement.
Describing the matter as one of urgent national importance, the MP stressed that decisive and transparent action is necessary to preserve:
- Public confidence in the banking system
- Financial sector stability in Sri Lanka
