📈 CBSL Clarifies Role Amid Treasury and NDB Fraud Probes

Governor Dr. Nandalal Weerasinghe has distinguished the Central Bank’s supervisory mandate from operational failures following a US$ 2.5 million Treasury phishing scam and a Rs. 13.2 billion fraud at National Development Bank PLC (NDB). • Government Payments & Treasury Scam The CBSL serves as the "banker to the Government," executing instructions from authorized entities. The US$ 2.5 million fraudulent debt servicing payment (processed in 10 tranches) originated from the External Resources Department. Responsibility for debt management has shifted to the Public Debt Management Office (PDMO) under the Finance Ministry. • NDB Fraud & Financial Stability The Rs. 13.2 billion internal fraud at NDB is classified as an isolated incident. CBSL confirms NDB remains stable with capital and liquidity levels within regulatory thresholds. • Depositor Safety: Confirmed no impact on depositor funds or the broader banking & financial services sector. • Regulatory Stance: CBSL monitors prudential systems and internal controls but does not scrutinize individual commercial transactions. • Current Actions & Oversight • Investigations: The CID, CoPF, and international authorities are probing the Treasury breach. • Compliance: CBSL has mandated NDB to conduct independent and policy audits while ensuring transparency through SEC disclosures. • Systemic Impact: Despite a sharp rise in "CEFT receivables" (from Rs. 3.1 Bn to Rs. 12.2 Bn in 2025), the Governor maintains that the financial system remains resilient.