Order issued to arrest Lahiru Kodikara, the mastermind of the NDB fraud, and other senior officials

The magisterial inquiry into the fraudulent acquisition of Rs. 13 billion from the National Development Bank's (NDB) general ledger account was recently called, during which the court ordered the Criminal Investigation Department (CID) to immediately arrest any senior bank officials found to have aided and abetted the said fraud. Instructions were also given to investigate whether the recommendations provided by the Central Bank regarding this financial fraud, which occurred between 2024 and March 2026, were suppressed by senior bank officials, and to submit a report.

In connection with this incident, the four suspects currently remanded – Lahiru Kodikara, Assistant Manager of the bank's finance division, his brother Pathum Kodikara, bank data operator Saranga Kosala, and businessman Mohamed Inhamul Hashan – were produced before the court on that day. This trial is being held based on a complaint filed by the Computer Crime Investigation Division of the Criminal Investigation Department, and the Magistrate ordered the suspects to be further remanded until May 29.

Investigation officers informed the court that the first suspect, Lahiru Kodikara, acted as the mastermind of this fraud, and that he committed this financial crime by gaining the trust of everyone at the bank. It was also revealed that he had intervened to provide various loan facilities to other bank officials, and due to this close relationship, no official questioned his actions. CID officers informed the court that no proper audit had been conducted on the bank's general ledger account since 2022, and according to the statements of the Chief Executive Officer of the audit division, no formal audit reports had been prepared.

Here, the Magistrate questioned why previous orders to take custody of internal and external audit reports since 2022 had not been implemented. The Magistrate also inquired whether the relevant audit officials were still in service and ordered that bank documents and audit reports be taken into custody immediately, and that officials who neglected their duties be investigated. Meanwhile, President's Counsel Kalinga Indatissa, appearing for the suspects, argued that it was unfair to place the entire responsibility for this massive fraud solely on his clients, and that such an incident could not have occurred without the knowledge of higher officials.

The Criminal Investigation Department further informed the court that 900 suspicious bank accounts related to this fraud have been identified so far, and investigations are ongoing in that regard. It was also revealed that the first suspect had transferred Rs. 10 million to an account at a Sampath Bank branch in the Pottuvil area, and complaints regarding this have also been forwarded to the Central Bank of Sri Lanka. Accordingly, the Magistrate finally ordered an investigation into all individuals directly or indirectly involved in this financial fraud and those who failed to implement the Central Bank's recommendations, and to submit a comprehensive report.