The Central Bank of Sri Lanka (CBSL) has barred the Ernst & Young (EY) audit partners responsible for auditing National Development Bank (NDB) from conducting any further banking audits. The central bank has also compelled the lender to reconstitute its Board audit committee.

The regulatory intervention follows the uncovering of a Rs. 13.6 billion fraud that ran undetected for three years and was only uncovered after NDB's 2025 financial accounts had already been certified.

The enforcement measures were formally disclosed during a session of the Committee on Public Finance (CoPF) chaired by SJB MP Dr. Harsha de Silva on 5 November. Confirming the regulator's stance, Director of Banking Supervision Mrs. R. R. de Silva Jayatillake stated, “We have already taken action against the auditors. The partners involved cannot continue doing banking audits. We have also got the bank to reconstitute the Board audit committee”.