Unveiling the NDB Scandal: A $42 Million Fraud Ignites Arrests

The National Development Bank (NDB) in Sri Lanka is embroiled in a substantial fraud case involving USD 42 million, prompting additional arrest orders by a court. Four NDB employees were apprehended earlier this month, and the Central Bank has confirmed that customer deposits remain secure.

On Thursday, the chief magistrate's court directed police to enforce further arrests, marking this case as one of the most significant bank frauds in Sri Lanka's history. The NDB employees allegedly misused internal accounts to execute fraudulent transfers of LKR 13.2 billion, violating regulatory guidelines.

Despite these developments, the Central Bank has reiterated that NDB's capital and liquidity infrastructure remain solid. A CID police team is working with the Central Bank to meticulously investigate this large-scale financial misconduct involving the publicly quoted bank established by the government in 1979.

(With inputs from agencies.)