NDB Fraud Spreads to Multiple Banks: CBSL’s Negligence Puts Financial System at Risk, Warns Ravi Karunanayake
Former Finance Minister Ravi Karunanayake has raised an alarm over the multi-billion rupee financial fraud at National Development Bank (NDB), revealing that it has now escalated into a systemic crisis affecting several other commercial banks and financial institutions. He squarely blamed the Central Bank of Sri Lanka (CBSL) for its “irresponsible oversight” and failure to implement robust regulatory mechanisms.
Contagion Across the Financial Sector
According to Karunanayake, the fraudulent patterns observed at NDB have spread to between 5 and 7 other commercial banks. Furthermore, 4 to 9 Non-Banking Financial Institutions (NBFIs) are reportedly caught in this web of financial malpractice. This widespread irregularity poses a direct threat to billions in public deposits and the overall stability of the nation’s economy.
Criticism of the Central Bank’s Oversight
“The Central Bank and relevant authorities have been obstructing their duties by failing to answer critical national questions for months,” Karunanayake charged. He highlighted that even within Parliament and Oversight Committees, officials have avoided providing transparent answers regarding how billions of rupees were allegedly siphoned out of the country without detection.
The EPF Investment Paradox
The former Minister pointed out a glaring conflict of interest: the Central Bank, acting as the custodian of the Employees’ Provident Fund (EPF), has continued to invest these public funds into NDB despite the ongoing fraud allegations. He questioned the logic and morality of risking the life savings of the working class in a financial institution currently embroiled in such significant controversy.
Karunanayake emphasized that this “systemic failure” in accountability is eroding public trust in the financial system. He called for immediate corrective measures and transparency from the CBSL to prevent a total collapse of the country’s financial stability.
