The International Monetary Fund (IMF) has urged the Central Bank of Sri Lanka to strengthen its supervisory and regulatory framework following the multi-billion rupee fraud at the National Development Bank (NDB). The disclosure came from the Committee on Public Finance (CoPF).
The matter was discussed during a recent CoPF meeting chaired by Samagi Jana Balawegaya (SJB) MP Dr. Harsha de Silva, with the participation of Central Bank Governor Dr. Nandalal Weerasinghe and senior officials. Dr. de Silva highlighted that the IMF, in its fifth and sixth review staff reports, had emphasized the need to enhance the Central Bank’s regulatory powers. Officials briefed the committee on the ongoing steps taken in response to the allegations.
Forensic Audit Launched Into NDB Transactions.
Central Bank officials confirmed that they have launched a forensic audit to investigate the alleged fraudulent transactions. They said the Central Bank is conducting the probe in collaboration with the NDB. However, they clarified that the NDB did not set the scope of the investigation, and the Central Bank finalized it with its own input.
CoPF members, including Ravi Karunanayake, questioned the involvement of the accused bank in shaping the investigation scope. Officials responded that NDB only prepared a preliminary draft, while the Central Bank made the final decision.
Rs. 13 Billion Allegedly Siphoned, Report Due in July.
Officials stated that they will submit an interim report within a week, while the final report is expected on July 18. The investigation will cover financial transactions over a ten-year period.
Earlier reports indicated that around Rs. 13 billion had been siphoned off through fraudulent transactions at NDB. Public Security Minister Ananda Wijepala also informed Parliament that funds had been transferred out of the country.
