The IMF informs the Central Bank to tighten bank regulation due to the NDB financial fraud.

Based on the alleged multi-billion rupee financial fraud at the National Development Bank (NDB), the International Monetary Fund (IMF) has informed the Central Bank of Sri Lanka to further strengthen the supervision and regulatory process in the country's banking sector. The need to urgently strengthen this regulatory responsibility of the Central Bank has been emphasized in the IMF's staff report related to its fifth and sixth reviews.

A special meeting was recently held between the Committee on Public Finance (CoPF) and Central Bank authorities to discuss this serious financial irregularity. The discussion, chaired by Samagi Jana Balawegaya Member of Parliament Dr. Harsha de Silva, was also attended by Central Bank Governor Dr. Nandalal Weerasinghe. Officials informed the committee that a forensic audit has already been initiated to uncover the root causes and the modus operandi of the alleged fraud.

The Central Bank of Sri Lanka is conducting this audit with the assistance of the National Development Bank. Dr. Harsha de Silva and committee member Ravi Karunanayake questioned the involvement of the accused institution itself in determining the scope of the investigation. In response, Central Bank officials stated that only a preliminary outline related to the scope was obtained from the bank, and it was formally prepared with the direct intervention of the Central Bank. An interim report of this comprehensive investigation, covering transactions over a ten-year period, is expected to be submitted within a week, and its final report is scheduled to be released on July 18.

According to previously released reports, nearly 13 billion rupees have been siphoned off from the banking system through this sophisticated fraudulent scheme. Meanwhile, Minister of Public Security Ananda Wijepala made a special revelation last week in Parliament, stating that the funds embezzled through this fraud have already been transferred to foreign countries.