-By Ruwan Weerakoon
(Lanka-e-News -12.April.2026, 17.20 PM) A significant inquiry is set to unfold at the National Development Bank (NDB) as a group of senior officials with Directors from the institution has been summoned to the Criminal Investigation Department (CID). This development follows allegations of large-scale fraud estimated to be around Rs. 13.2 billion, as reported by internal sources.
The NDB has taken swift action in response to the allegations, resulting in the suspension of several implicated officials and the removal of others from service. A letter from the NDB to the Colombo Stock Exchange dated April 06, 2026, disclosed that the internal probe has determined that the fraudulent activities are restricted to one specific operational division.
In a related matter regarding the misappropriation of Rs. 290 million from the bank's general ledger account, five suspects, including a Deputy Manager and the General Manager of the bank's Information Technology Division, were remanded by Colombo Chief Magistrate Asanga S. Bodaragama on November 27, 2025. These individuals are set to remain in custody until December 11, 2025. During the court proceedings, CID officials revealed that parts of the misappropriated funds could be traced back to two of the suspects' personal bank accounts.
Additionally, investigations have seen three other suspects previously arrested and presented before the court, now also under remand. The CID has indicated that approximately 60 individuals, including additional bank officials, may soon face arrest as inquiries continue, with progress reports anticipated in court.
This wave of investigations follows a formal complaint lodged by the bank with the Financial Crimes Investigation Division (FCID) of the CID, which has catalyzed the ongoing scrutiny. Further hearings were conducted on January 07, 2026, where 16 suspects, including two bank employees, had already been apprehended, with several facing remand.
Considering the seriousness of the allegations, the Magistrate has ordered the CID to expedite its investigation within a predetermined timeline to ensure accountability and transparency.
With the organizational leadership at the helm, NDB’s Board of Directors is headed by Chairman and Independent Non-Executive Director Sriyan Cooray and Chief Executive Officer Kelum Edirisinghe. The Board includes a diverse array of directors such as Bernard Sinniah, Sujeewa Mudalige, Kushan D’Alwis, Kasturi Chellaraja, Shweta Pandey, Hasitha Premaratne, Sanjaya Mohottala, and Shanil Fernando, all dedicated to steering the institution through this tumultuous time.
As this investigation unfolds, the banking community and the general public await further updates that will shed light on the full extent
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by (2026-04-12 12:12:57)
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