Customer Balances Unaffected as NDB Reaffirms Strong Capital and Liquidity

National Development Bank PLC (NDB) has formally disclosed to the Colombo Stock Exchange that Deloitte Touche Tohmatsu India LLP ("Deloitte") has concluded its independent forensic review into the fraud incident previously identified by the bank.

According to the corporate disclosure, Deloitte's final report confirms the total financial impact of the fraud at Rs. 13,639,664,684 (approximately LKR 13.64 billion). This represents an incremental amount of Rs. 60,000,000 over the Rs. 13,579,664,684 reported in the bank's interim disclosure on June 26, 2026. The additional Rs. 60 million will be recognized in the bank's accounts in accordance with applicable accounting standards.

The final forensic report provides a refined breakdown of the fraud's financial impact across three distinct accounting periods:

• Period Prior to January 1, 2025: Finalized at LKR 1,462,665,000, compared to the bank's initial internal estimate of LKR 914,505,000 and the June interim figure of LKR 1,417,665,000.
• Financial Year Ended December 31, 2025: Maintained at LKR 9,617,000,000, consistent across all internal and independent reviews.
• Quarter Ended March 31, 2026: Finalized at LKR 2,560,000,000, adjusting the initial estimate of LKR 2,668,495,000 and the interim figure of LKR 2,545,000,000.

In total, the financial impact expanded from the bank's initial internal estimate of LKR 13.20 billion on April 6, 2026, to Deloitte's final confirmed figure of LKR 13.64 billion.

Deloitte was commissioned in consultation with and following recommendations from the Director of Bank Supervision of the Central Bank of Sri Lanka (CBSL), issuing its final report directly to the regulator with a copy sent to NDB.

NDB reported that Deloitte's findings generally accord with the bank’s internal investigation. Criminal proceedings against the perpetrators remain active in court following formal reports to law enforcement authorities. To recover misappropriated funds, NDB has engaged an expert foreign agency specializing in tracing stolen money and digital assets.

Internally, NDB has initiated disciplinary actions against individuals identified as responsible for collusion, lack of supervision, and control lapses. The bank confirmed that it is actively implementing Deloitte's recommendations concerning governance improvements, control failures, and technology lapses, keeping the CBSL continuously updated.

NDB reassured depositors, customers, and stakeholders that no customer suffered financial losses as a result of the fraud and that all customer account balances remain fully intact. The bank emphasized that it remains well-capitalized with sound liquidity levels.