– The People’s Bank said that it is in the process of recovering approximately Rs. 656 million mistakenly paid to customers following a systemic exchange rate error in its remittance platform that affected transactions processed between May 2023 and March 2026.

In a media release issued on May 16, the state-owned bank said the error related to the application of the exchange rate for a single foreign currency within a specific remittance system, resulting in certain customers receiving excess amounts over the affected period. The bank said the issue has now been fully rectified.Upon detecting the anomaly, People’s Bank said it immediately initiated a detailed internal review and strengthened the relevant operational controls to prevent similar incidents in the future. The matter is currently being reviewed in consultation with the relevant regulatory and supervisory authorities, including the Central Bank of Sri Lanka.

The bank stated that the estimated financial impact of the incident amounts to approximately LKR 656 million, which has already been fully recognized in its financial statements during the relevant period. Based on current assessments, the bank said no further financial impact is anticipated.People’s Bank further noted that recovery processes relating to the affected transactions are already underway and that progress has been made in recovering the excess amounts from the respective customers.

The bank also sought to reassure customers and stakeholders that its day-to-day banking operations, digital platforms and customer services continue to function normally and without interruption. With an asset base of approximately LKR 3.8 trillion, the bank emphasized that the incident has no material impact on its overall financial stability, profitability, or the safety of customer funds and deposits.