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Official Statement
NDB Addresses Fraud Incident and Reinforces Financial Strength and Stability
National Development Bank PLC (Bank) wishes to provide a further update on the previously disclosed fraud incident, with a clear assurance to customers and all stakeholders.
The Bank reiterates that no customer balances have been affected by this incident. All customer balances remain intact and secure. The Bank continues to operate as normal, with uninterrupted services across all operations. Its financial position remains strong, with sufficient capacity to meet all obligations and support customers.
Further to the disclosure made on 2nd April 2026, the Bank confirms that the incident was confined to a specific operational area and involved certain employees acting in collusion. The matter continues to be treated with the highest level of urgency.
The Bank has acted promptly and decisively upon identifying the issue. All implicated employees have been suspended, while all relevant records and evidence have been secured to support ongoing investigations. The affected operational unit has been placed under separate oversight, supported by revised reporting structures and enhanced access controls across the organisation. Efforts are ongoing — on multiple fronts — to recover the said funds with the support of the law enforcement authorities, who have taken action including arrests connected to the matter.
In the worst-case scenario, the financial impact to the Bank is estimated to result in an unaudited Loss after Tax for the quarter ended 31 March 2026 of approximately LKR 4.0 billion, after making full provision for the maximum loss expected from this incident.
The Bank reported a net profit after tax of LKR 11.0 billion for the year ending December 31, 2025, with a Q4 2025 net profit of LKR 3.5 billion. The Bank remains financially strong: notwithstanding this impact, the Bank's Common Equity Tier I, Tier I and Total CAR will continue to be above the minimum regulatory requirements of 7.0%, 8.5% and 12.5%, respectively. The unaudited Total Asset Base of the Bank, which is approximately LKR 990.0 billion as at March 31, 2026, would be impacted by 0.7%.
The Central Bank of Sri Lanka has been kept fully informed. The Central Bank has extended appropriate regulatory support and oversight, within its mandate, to assist the Bank in maintaining adequate levels of liquidity and capital, to ensure smooth functioning and stability of the Bank.
In line with regulatory direction, the cash dividend payable to shareholders on 6th April 2026 has been suspended, while the scrip dividend will proceed as planned.
The Board of Directors will appoint an independent forensic auditor to conduct a thorough and impartial review of the fraud.
NDB Bank remains committed to transparency and accountability and will apprise the public as more material information becomes available.
The Bank urges the public to avoid speculation or the spread of unverified information. Customers seeking clarification are encouraged to contact their nearest NDB branch, relationship manager or customer service on 0117448850 for accurate information.
Customer Q&A
1. Are my deposits safe?
Yes. Your deposits are fully secure. We confirm that customer account balances are intact. You can continue to bank with complete confidence.
2. Has any customer money been lost?
No. The incident is related to internal operations, there has been no impact to customer account balances.
3. Can I still withdraw my money or use my accounts as usual?
Yes. All banking services are operating as normal. There are no restrictions on withdrawals, transfers, or any other banking activities.
4. Is the Bank financially stable?
Yes. The Bank remains financially strong, well‑capitalised, and liquid. It continues to operate above regulatory requirements and has access to liquidity, as required, including support from the Central Bank of Sri Lanka.
5. What exactly happened?
The incident occurred within a specific area of the Bank’s internal operations and involved misconduct by certain employees in collusion with external parties.
6. Has the issue been contained?
Yes. Immediate action has been taken to contain the situation. The individuals involved have been suspended, and law enforcement authorities are already involved.
7. What is the Bank doing to prevent this from happening again?
The affected operational unit has been placed under separate oversight, with new staff and revised reporting lines. An independent forensic audit will also be conducted to further strengthen safeguards.
8. Is the Central Bank involved?
The Central Bank of Sri Lanka has been kept fully informed. The Central Bank has extended appropriate regulatory support and oversight, to assist the Bank in maintaining adequate levels of liquidity and capital, to ensure smooth functioning and stability of the Bank.
9. Why did the figure increase from LKR 380 million to LKR 13.2 billion?
The initial figure was based on early findings. As the investigation progressed and a more detailed review was carried out, the Bank was able to identify the full extent of the transactions involved. We have now ascertained the broader financial impact based on this detailed assessment. Importantly, while the scope of the issue is now clearer, the Bank remains financially strong, and there is no impact on customer account balances or day‑to‑day operations.
10. What is the overall impact on the Bank?
The overall impact is limited and manageable. Even in a worst‑case scenario, it represents less than 0.7% of the Bank’s total assets, which were approximately LKR 990 billion as at end March 2026 (unaudited). The Bank remains financially strong, with no impact on customer deposits, liquidity, or day‑to‑day operations.
11. Should I be worried about banking with NDB?
No. The Bank remains stable, secure, and fully operational. Your deposits are safe, and there are no liquidity concerns. NDB continues to serve its customers as usual.
12. Will there be any disruption to services in the future?
No disruptions are expected. The Bank’s operations continue as normal, and all services remain fully available to customers.
13. Where can I get updates?
The Bank will continue to share updates through its official website, social media channels, and public announcements as more information becomes available.