Colombo Chief Magistrate Asanga S. Bodaragama today ordered the Criminal Investigation Department to arrest and produce before court any senior officials of the National Development Bank (NDB) who may have aided and abetted the fraudulent misappropriation of Rs. 13 billion from the bank’s general ledger account.The Magistrate also ordered the CID to submit a detailed report to court regarding the recommendations issued by the Central Bank of Sri Lanka after complaints were made regarding the fraud and if such recommendations had been made, to identify the senior bank officials who had suppressed them.These orders were issued when the complaint filed by the Cyber Crimes Investigation Division of the CID regarding the alleged fraudulent withdrawal of Rs. 13 billion from the general ledger account of the National Development Bank between 2024 and March 2026 was taken up before court.

When the matter was called, the suspects who were remanded in connection with the incident, Assistant Manager of the bank’s finance division Lahiru Kodikara, his alleged brother Pathum Kodikara, bank data operator Saranga Kosala and businessman Mohammed Inhamul Hashan were produced before court by prison officials.Submitting a further report to court, the CID stated that the first suspect had gained the trust of everyone and had masterminded the fraud.

The CID stated that the suspect had also facilitated loans through the bank for other officers of the institution. Owing to this close relationship, the other officers had allegedly failed to question his activities and had acted with complete trust in him.At this point, the Chief Magistrate questioned the prosecution and inquired whether the bank’s audit reports had been taken into custody as previously ordered by court.In response, the CID stated that no audit had been conducted on the bank’s general ledger account since 2022. The CID further stated that statements had been recorded from the Chief Executive Officer of the audit division and that according to her statement, a proper audit had not been carried out.

The Magistrate then observed, “Is the audit officer who served since 2022 still in service? I ordered that all internal and external audit reports be taken into custody. If that order has not been carried out, it must be implemented immediately.” At this stage, counsel appearing for the suspects informed court that annual audits had in fact been conducted and that such reports were public documents.

The CID, making further submissions, stated as follows: “The first suspect had transferred Rs. 10 million to a Sampath Bank account in Pottuvil. That bank has lodged complaints with the Central Bank of Sri Lanka regarding that transaction and several other money transfers.”The Magistrate again questioned the CID and inquired how many suspicious accounts had so far been identified.Responding to the query, the CID stated that 900 accounts had been identified as suspicious accounts.Reacting to the submissions, the Magistrate ordered the CID to submit a summary report regarding the response of senior bank officials in relation to these activities.President’s Counsel Kalinga Indatissa, appearing for the suspects along with other lawyers, submitted that it was unfair to place the entire blame for the fraud solely on their clients. Counsel further stated that the situation was an example of the saying that “water flows downward to the lowest point.”

After considering the submissions made by both parties, the Magistrate ordered the CID to submit a detailed report regarding any bank officials who may have neglected their duties.The Magistrate further ordered that the audit reports and relevant bank records be taken into custody immediately and directed that a report also be submitted regarding persons who had failed to act on the recommendations of the Central Bank.

The suspects were ordered to be remanded till May 29.