MONETABRIEF – Ernst and Young, Sri Lanka can continue to audit bank though two partners are barred in relation to the fraud at NDB Bank, the central bank said.
Several staff involved in the online transfers at NDB Bank had siphoned off more than 13 billion rupees over three years, which was undiscovered by internal external auditors or the regulator.
A whistleblower had exposed the fraud days after 2025 accounts and annual report was published.
The central bank's Director of Bank Supervision revealed the restriction on audit partners to the parliament's Committee on Public Finance.
The full statement is reproduced below:
Clarification on the Auditors to Audit the Accounts of Licensed Banks in Sri Lanka
Following the disclosure of an internal fraud at National Development Bank PLC (NDB), the Central Bank of Sri Lanka (CBSL) requested M/s Ernst & Young, Sri Lanka (E&Y) not to assign any audit engagements of Licensed Banks to the Engagement Partner and the Quality Assurance Partner involved in the audit of NDB’s financial statements.
For the avoidance of doubt, this restriction does not affect the recognition of E&Y as a qualified auditor eligible to audit the accounts of Licensed Banks in Sri Lanka under the provisions of the Banking Act, No. 30 of 1988, as amended. (Colombo/Nov10/2026)