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Monday, November 9 2026
Monday, November 9 2026
AUDIT : NDB Auditors had flagged the matter but not qualified accounts
MONETABRIEF – Sri Lanka's central bank has barred partners of the accounting firm involved in auding NDB Bank auditing other lenders, after a 13 billion rupee fraud over three years was discovered after 2025 accounts were certified.
NDB was audited by Ernst and Young.
"We have already taken some action against the auditors," Director of Banking Supervision R R de Silva Jayatillake told the parliament's Committee on Public Finance.
"The Partners involved cannot continue doing banking audits.
"We have also got them to reconstitute the board audit committee.
Auditors had flagged the issue with an asterisk. But there was no formal qualification or emphasis of matter.
Some NDB staff who were involved in information technology had siphoned off around 13 billion rupees over several years and created fictitious asset accounts through the IT system to close the hole in the account at the period end.
Sri Lanka Accounting and Auditing Standards Monitoring Board has sought legal advice on a report on NDB Bank, after a report on the incident was prepared.
The SLAASMB, which monitors the adherence of accounts of designated companies to Sri Lanka standards among specified businesses, which include banks.
"The report was completed and it was shared with the central bank, SEC and a copy was sent to the honorable Attorney General," SLAASMB Chairwoman E H Mohotty told the parliament's Committee on Public Finance.
"We need to figure out the legal action part of it."
COPF Chairman Harsha de Silva asked whether she was free to give some details or not.
"I think it is not," Mohotty said.
"That means it is scary," De Silva remarked.
The central bank is also studying the report to take action.
Governor Nandalal Weerasinghe said based on his understanding the central bank could also take action against the Auditor based on the report. (Colombo/Nov08/2026)
| 3 month bill | 9.26% | 1bp ▲ |
| 12-m bill | 9.95% | 2bp - |
| Gold (Ounce) | $4015 | - ▼ |
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