IMF says observing NDB fraud issue carefully

Friday, 10 April 2026 00:28 - - {{hitsCtrl.values.hits}}

The International Monetary Fund (IMF) yesterday said it was observing the Rs. 13.2 billion fraud at NDB Bank “carefully” but opined there was no systemic risk as per the Central Bank.

In response to a query on the NDB fiasco and its impact on the banking sector during a media interaction, IMF Sri Lanka Mission Chief Evan Papageorgiou said: “NDB disclosed an internal fraud involving employees acting in collusion with external parties. The issue was confined to a specific operational area, with estimated losses of around Rs. 13.2 billion. Investigations are ongoing.”

He said based on available information and discussions, the Central Bank has assessed that NDB remains well capitalised and liquid, with capital ratios above regulatory minimums.

“The issue appears to be contained at the institutional level and is not systemic,” said Papageorgiou.

“We are watching the situation carefully and remain in communication with the Central Bank. Both NDB and the regulator have characterised this as an operational and oversight failure within a specific area, with proactive and supervisory actions underway,” said IMF Sri Lanka Mission Chief.