National Development Bank PLC (NDB) has said that an internal fraud has been quantified at approximately Rs. 13.2 billion, a sharp increase from earlier estimates.

In a disclosure to the Colombo Stock Exchange (CSE), the bank stated that the fraud was confined to a specific area of operations and that recovery நடவட are underway with the support of law enforcement authorities.

NDB assured that customer balances remain unaffected and that its operations continue without disruption, adding that the bank remains well capitalised and liquid.

The Central Bank of Sri Lanka (CBSL) has directed the bank to suspend a scheduled cash dividend payment and restrict discretionary expenditure, including branch expansion. However, the regulator has permitted the scrip dividend to proceed.

CBSL has also extended regulatory support to ensure that the bank maintains adequate liquidity and capital buffers.

The bank further said that employees implicated in the incident have been suspended, relevant records secured, and access controls tightened, while the affected unit has been placed under new oversight.

An independent forensic audit is also to be commissioned to review the incident and strengthen internal control systems.