National Development Bank PLC (NDB) has engaged a specialised foreign agency to trace stolen money and digital assets in an effort to recover funds lost in a massive fraud uncovered earlier this year, following the release of a final forensic report establishing total losses at Rs. 13.64 billion. The investigation, completed by Deloitte Touche Tohmatsu India LLP, fixed the final misappropriation at Rs. 13,639,664,684, reflecting a Rs. 60 million increase over the Rs. 13,579,664,684 identified in an interim assessment on 26 June, 2026. The institution confirmed that this additional Rs. 60 million will be recognized within its accounts in alignment with applicable accounting standards.
A revised breakdown shows that Rs. 1.46 billion of the loss occurred before 1 January, 2025—up from Rs. 1.42 billion stated in the interim findings—while Rs. 2.56 billion stemmed from the quarter ended 31 March, 2026, slightly above the previously calculated Rs. 2.55 billion. Misappropriations attributed to the financial year ended 31 December, 2025 remained unchanged at Rs. 9.62 billion. The final sum compares against an initial internal projection of Rs. 13.2 billion recognized in the first-quarter interim financial statements, while the earlier Deloitte figures were factored into second-quarter accounts.
Deloitte was commissioned following recommendations and consultations with the Central Bank of Sri Lanka (CBSL) Director of Bank Supervision, delivering the report directly to the CBSL with a copy provided to NDB to safeguard procedural independence. In a formal statement signed by NDB Director/CEO Kelum Edirisinghe, the bank stressed that the forensic evaluation does not mark the conclusion of the matter, but rather represents a pivotal step in rebuilding reputation, reinforcing governance frameworks, and addressing control and technology lapses under continuous updates to the CBSL.
Key Developments
- Asset Recovery Drive: A foreign agency specializing in digital assets and stolen funds has been engaged to recover the Rs. 13.64 billion, while internal disciplinary measures target personnel tied to supervision failures, collusion, and control lapses.
- Customer Protections: NDB reiterated that customer balances remain completely unaffected, zero customer losses occurred, and the bank maintains robust liquidity alongside strong capitalization.
- Judicial Proceedings: The Colombo Chief Magistrate instructed the Criminal Investigation Department (CID) to arrest and produce senior officials who abetted the general ledger account fraud. Suspects previously remanded include Finance Division Assistant Manager Lahiru Kodikara, his brother Pathum Kodikara, bank data operator Saranga Kosala, and businessman Mohammed Inhamul Hashan.
- Regulatory and Parliamentary Probes: CID investigators reported that Lahiru Kodikara masterminded the scheme, that no audit of the general ledger account had taken place since 2022, and that 900 suspicious accounts were uncovered. Concurrently, Parliament’s Committee on Public Finance (CoPF), chaired by Samagi Jana Balawegaya MP Dr. Harsha de Silva, scrutinized the CBSL over missed warning signs and supervisory lapses.
The fraudulent operation initially surfaced on 2 April, 2026, when internal disclosures pointed to staff members colluding with external third parties under an initial exposure estimate of approximately Rs. 380 million, before further reviews rapidly raised the tally to Rs. 13.2 billion. As legal cases against the perpetrators proceed through criminal courts, NDB continues to enforce governance overhauls designed to serve as a benchmark across the wider financial industry.