Friday May 15, 2026
Friday May 15, 2026
Friday, 15 May 2026 06:44 - - {{hitsCtrl.values.hits}}
Colombo Chief Magistrate Asanga S. Bodaragama yesterday ordered the Criminal Investigation Department (CID) to arrest and produce before Court any senior National Development Bank PLC (NDB) officials found to have aided and abetted the alleged fraudulent misappropriation of Rs. 13.2 billion from the bank’s general ledger account.
The Magistrate also directed the CID to submit a detailed report regarding recommendations issued by the Central Bank of Sri Lanka (CBSL) following complaints related to the alleged fraud and to identify any senior bank officials who may have suppressed such recommendations.
The orders were issued when the complaint filed by the Cyber Crimes Investigation Division of the CID relating to the alleged fraudulent withdrawal of Rs. 13.2 billion from NDB’s general ledger account between 2024 and March 2026 was taken up before Court.
When the matter was called, the suspects currently in remand custody — Assistant Manager attached to the bank’s Finance Division Lahiru Kodikara, his brother Pathum Kodikara, bank data operator Saranga Kosala, and businessman Mohammed Inhamul Hashan — were produced before Court by prison officials.
Submitting a further report, the CID informed Court that the first suspect had gained the trust of other officers and had allegedly masterminded the fraud.
The CID further stated that the suspect had facilitated loans through the bank for other officers of the institution and that due to the close relationships involved, certain officers had allegedly failed to question his activities.
At this stage, Chief Magistrate Bodaragama questioned the prosecution on whether the bank’s audit reports had been taken into custody in line with a previous Court order.
In response, the CID informed Court that no audit had been conducted on the bank’s general ledger account since 2022. Investigators further stated that statements had been recorded from the Chief Executive Officer of the Audit Division, who had allegedly stated that a proper audit had not been carried out.
The Magistrate then observed in Court: “Is the audit officer who served since 2022 still in service? I ordered that all internal and external audit reports be taken into custody. If that order has not been carried out, it must be implemented immediately.”
Counsel appearing for the suspects thereafter informed Court that annual audits had in fact been conducted and that the reports were public documents.
Making further submissions, the CID stated that the first suspect had transferred Rs. 10 million to a Sampath Bank account in Pottuvil and that the bank had lodged complaints with the CBSL regarding the transaction and several other money transfers.
The Magistrate subsequently questioned investigators on the number of suspicious accounts identified in the investigation so far.
Responding to the query, the CID informed Court that 900 suspicious accounts had been identified.
Following the submissions, the Colombo Magistrate directed the CID to submit a summary report regarding the response of senior bank officials to the alleged activities.
President’s Counsel Kalinga Indatissa, appearing for the suspects along with a team of lawyers, submitted that it was unfair to place the entire blame for the alleged fraud solely on his clients. Counsel further stated that the circumstances reflected the saying that “water flows downward to the lowest point.”
After considering submissions made by both parties, the Colombo Magistrate directed the CID to submit a detailed report regarding any bank officials who may have neglected their duties.
The Court also ordered that the audit reports and relevant bank records be taken into custody immediately and directed investigators to submit a report regarding individuals who had allegedly failed to act on recommendations made by the CBSL.
The suspects were ordered to be remanded until 29 May.
