Business

Parliament rocked by LKR 13.2 billion NDB fraud: Systemic failure or regulatory lapse?

Published

1 day ago

2026/04/9

Ravi Karunanayake and Bimal Ratnayake

The corridors of power in Sri Lanka’s Parliament became a theater of intense debate on April 7, 2026, as lawmakers confronted the fallout of the National Development Bank (NDB) fraud scandal. What began as a Securities Exchange Commission (SEC) disclosure has now transformed into a scathing critique of the nation’s financial regulatory domain.

Opposition MP Ravi Karunanayake took to the floor to demand accountability, not just from the bank, but from the regulatory authorities themselves. Highlighting the alarming jump in reported losses – from an initial LKR 380 million on April 2nd to a massive LKR 13.2 billion by April 6th – Karunanayake questioned how such a systemic breach could occur undetected.

“I want to focus your attention on the operations… and its supervision process,” Karunanayake told the House. “I was more shocked about what we heard at the Public Finance Committee… as there was no one to take the responsibility for detecting this earlier”.

The MP emphasised that his intention was not to trigger a ‘run’ on the bank, but to ‘purify’ oversight mechanisms, which he suggested had failed in their primary duty of early detection.

The gravity of the situation was underscored by Minister Bimal Ratnayake, who confirmed that the President has been formally briefed on the fraud. The Minister assured Parliament that the administration would take all necessary actions to ensure ‘financial sector’s discipline’ in the wake of this fraud.

Regulatory authorities have already moved to assert authority, issuing a statement on April 5, 2026, to provide oversight and maintain liquidity stability. However, the ‘appropriate regulatory support’ mentioned came with heavy strings attached as follows:

Dividend Freeze: The bank was ordered to immediately suspend cash dividends scheduled for distribution in April 2026.

Operational Curbs: NDB has been directed to restrict discretionary spending and halt all branch expansions until further notice.

Forensic Mandate: Under regulatory and board pressure, NDB is appointing an independent forensic auditor to conduct an impartial review of its systems.

The LKR 13.2 billion fraud is estimated to impact NDB’s unaudited total asset base by 0.7%. While NDB Chairman Sriyan Cooray and CEO Kelum Edirisinghe were noted for their expertise by Ravi Karunanayake, the focus has shifted toward the systemic vulnerability of the sector. As the criminal investigation and internal inquiries proceed, the primary question remains: how did a fraud of this magnitude remain invisible to the regulators until it reached the breaking point?

With the Public Finance Committee now involved, the NDB incident is no longer just a corporate crisis – it is a test of the integrity of Sri Lanka’s entire financial supervisory framework.

By Sanath Nanayakkare

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Business

Sri Lanka secures IMF staff-level deal for USD 700 million tranche

Published

5 hours ago

2026/04/10

Thilina Walpola

Sri Lanka has reached a staff-level agreement with the International Monetary Fund to secure the next tranche of funding under its ongoing bailout programme, marking a key step in the country’s fragile economic recovery.

The agreement, announced this week, will enable Sri Lanka to access approximately USD 700 million, subject to approval by the IMF Executive Board. The funds form part of the USD 2.9 billion Extended Fund Facility (EFF) programme agreed following the 2022 economic crisis.

The latest development covers the combined fifth and sixth reviews of Sri Lanka’s reform programme, indicating that the country has made sufficient progress to move forward, while highlighting the need to sustain reform efforts.

Sri Lanka’s economy has shown signs of stabilisation in recent months, supported by improved revenue collection, easing inflation, and a gradual buildup of foreign reserves. However, the recovery remains vulnerable to both domestic and external pressures.

By Ifham Nizam

Business

Israeli attack on Lebanon triggers local stock market volatility

Published

5 hours ago

2026/04/10

Thilina Walpola

Initially CSE trading was somewhat volatile despite the ceasefire in West Asia but it experienced further volatility after Israel attacked Lebanon yesterday.

However, the IMF delegation which is now in Sri Lanka to release two tranches of its relief package created some positive sentiments for the market, analysts said.

The All Share Price Index went down by 73.06 points, while the S and P SL20 rose by 10.57 points.

Turnover stood at Rs 2.96 billion with six crossings. Those crossings were: JKH 5.5 million shares crossed to the tune of Rs 807.6 million and its shares traded at Rs 19.70, CIC Holdings two million shares crossed for Rs 54 million; its shares traded at Rs 32, Access Engineering 600,000 shares crossed for Rs 44.4 million; its shares traded at Rs 74, Central Finance 116,000 shares crossed to the tune of Rs 27.5 million ; its shares sold at Rs 237, LMF 250,000 shares crossed for Rs 22.8 million; its shares fetched Rs 91.10 and Kelani Cables 200,000 shares crossed for Rs 21 million and its shares traded at Rs 105.

In the retail market seven companies that mainly contributed to the turnover were; Dialog Rs237 million (7.5 million shares traded), LMF Rs 203 million (22 million shares traded), Colombo Dockyard Rs 199.7 million (1.1 million shares traded), HBA Foods Rs 163 million (18.5 million shares traded), JKH Rs 156 million (7.8 million shares traded), JKH Rs 156 million (7.8 million shares traded), Softlogic Holdings Rs 117 million (9.6 million shares traded) and Acme Printers Rs 107 million (15.6 million shares traded). During the day 133.3 million share volumes changed hands in 23666 transactions.

It is said that manufacturing sector counters, like JKH, performed well, while food sector counters, especially LMF and HBA Foods, performed well. Other sectors too performed somewhat well during the day.

Yesterday the rupee was quoted a Rs 315.42/48 to the US dollar in the spot market from 315.30/40 the previous day, dealers said, while bond yields were quoted higher.

By Hiran H. Senewiratne

Business

HNB Assurance marks 25 years with strategic transformation to ‘HNB Life’

Published

5 hours ago

2026/04/10

Thilina Walpola

Highlights from the new brand reveal as HNB Assurance transforms into HNB Life

Marking 25 years of trust, growth, and service excellence, HNB Assurance PLC has unveiled its new corporate identity, transitioning to HNB Life PLC a strategic evolution that reflects the company’s forward-looking vision and commitment to empowering lives with protection and the freedom to thrive, no matter where life takes them.

This milestone signifies more than a change in name or visual identity. It represents a deliberate transformation shaped by strong performance over the past few years, during which the company has achieved remarkable growth, strengthened its market position and enhanced its customer-centric capabilities.

The newly introduced logo, inspired by the form of a wing, symbolises HNB Life’s role as a proactive enabler. It reflects the organisation’s commitment to supporting individuals in navigating life’s journey with confidence, empowering them to pursue their aspirations and live life on their own terms.

The official unveiling took place at a launch event attended by key stakeholders, strategic business partners, well-wishers and employees.

Addressing the gathering, Chairman, Stuart Chapman highlighted the significance of this transformation, stating, “As we mark 25 years of progress, the transition to HNB Life reflects our strategic intent to evolve with the changing needs of our customers and the broader market. This new identity embodies our purpose, to enable and empower individuals to achieve what they truly aspire to in life, with confidence and security. As a company we are extremely excited on what the future holds for as, as we build on an incredible foundation laid over the past two and a half decades.”

The new Vision of the Company is “To be the leader in empowering lives with protection and freedom to thrive, no matter where life takes them”.