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SEC meets with NDB board on the Rs. 13.2 billion fraud
View(s):By Duruthu Edirimuni Chandrasekera
The Securities and Exchange Commission (SEC) convened a meeting with the Board of Directors of NDB Bank on Thursday in connection with the Rs. 13.2 billion fraud at the bank.
At the meeting, the SEC has apprised the Board that preliminary investigations into the matter have been formally started, reliable sources said. The Commission has emphasised that investor protection and the preservation of market confidence remain its foremost priorities, and that it is now engaged in a fact-finding exercise to determine the full circumstances surrounding the incident. This matter was also taken up at the SEC monthly meeting, which was held on Wednesday.
The fraud at NDB was an internal scheme involving collusion between some employees and third parties, limited to a specific operational area, its management said. The discovery of the fraud progressed over a short timeline, beginning on April 2, 2026, when NDB reported an initial loss of nearly Rs. 380 million. However, by April 6, 2026, further investigations led to a significant revision of the estimated loss to Rs. 13.2 billion.
In terms of financial repercussions, NDB expects an unaudited post-tax loss of around Rs. 4 billion for the quarter ending March 31, 2026, after accounting for the full provisions related to the fraud. Despite this substantial loss, the bank maintains a strong capital position, with liquidity ratios surpassing the minimum regulatory requirements, representing resilience in its financial health.
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