The financial impact of fraudulent transactions at NDB Bank has increased to Rs. 13.6 billion, with a final audit report identifying several governance failures and weaknesses in the bank’s internal control systems.

The findings were discussed at a meeting of Parliament’s Committee on Public Finance (COPF), chaired by MP Dr. Harsha de Silva, which summoned officials from the Central Bank of Sri Lanka to examine the financial irregularities and the final audit report.

According to the committee, the audit, covering the period from April 1, 2016, to March 31, 2026, identified fraudulent transactions amounting to Rs. 13,639,664,684. The total represents an increase of approximately Rs. 400 million from the Rs. 13.2 billion initially disclosed by NDB Bank on April 6, 2026.

The final figure is also Rs. 60 million higher than the amount disclosed by the bank on June 26, based on an interim audit report.According to the bank’s September 29 disclosure, the financial impact of the fraudulent transactions was distributed as follows:

* Rs. 1.5 billion before January 1, 2025.

* Rs. 9.6 billion during 2025.

* Rs. 2.5 billion during the first quarter of 2026.

The final audit report confirmed that no customer accounts were affected by the fraud.

However, investigators identified several governance failures involving the processing of Common Electronic Fund Transfer (CEFT) transactions, user activities within the bank’s core banking system, and the management of user credentials and access information.

The report also highlighted weaknesses in transaction monitoring, daily account reconciliation, financial compliance, internal auditing, branch network management and operational risk management.

During the meeting, the committee examined findings from investigations conducted by the Sri Lanka Accounting and Auditing Standards Monitoring Board and Deloitte Touche Tohmatsu India LLP.Particular attention was given to the failure of external auditors to detect irregularities in the bank’s financial statements.The committee also questioned the accountability of senior management regarding corporate governance and risk management. Lawmakers raised concerns about the potential impact on public funds, noting that a significant proportion of NDB Bank shares is held by institutions representing public and state funds.The committee also reviewed progress made by LankaPay in developing a centralized fraud monitoring system and emphasized the importance of strengthening fraud detection mechanisms within individual banks.The final audit report has recommended comprehensive improvements to NDB Bank’s internal controls, governance structures and operational procedures to prevent similar incidents.

The meeting was attended by Deputy Ministers Chathuranga Abeysinghe, Dr. Kaushalya Ariyaratne and Nishantha Jayaweera, along with several members of Parliament.