The National Development Bank PLC (NDB) has informed the Central Bank of Sri Lanka (CBSL) that it has uncovered an internal fraud that could lead to a significant loss being incurred. CBSL has also been informed that no customer accounts or deposits have been affected by this fraud.

CBSL has carried out a preliminary assessment of the financial impact on the basis of the information provided by NDB and is satisfied that notwithstanding the reported loss, the prudential ratios relating to capital adequacy and liquidity continue to be at levels above the minimum regulatory requirements. CBSL continues to monitor the developments and will take necessary measures, if required.

In the event of necessity, NDB will also be able to access temporary liquidity available from CBSL to banks under the provisions of the relevant laws and schemes already in place.