Chandra Jayaratne Urges Regulators to Intervene in NDB Derivative Action 📈

Good governance activist Chandra Jayaratne has formally appealed to 15 key regulatory and professional bodies to intervene as "Amicus Curiae" (friend of the court) in a high-profile derivative action filed against National Development Bank (NDB), its directors, and its external auditor. • Core Appeal: The intervention seeks to safeguard public interest, systemic stability, and the integrity of Sri Lanka's banking and financial services sectors following reports of alleged fraud and governance failures. • Key Institutions Targeted: • Regulators: Central Bank of Sri Lanka (CBSL), SEC, and Colombo Stock Exchange (CSE). • Professional Bodies: Institute of Chartered Accountants (CA Sri Lanka) and the Sri Lanka Institute of Directors. • Financial Stability: Fitch Ratings Lanka and People’s Bank (as debenture trustee). • Strategic Rationale: • Addressing risks related to AML/CFT (Anti-Money Laundering) and financial fraud. • Ensuring compliance with accounting & auditing standards to protect depositors and shareholders. • Strengthening corporate governance codes to prevent future systemic failures. • Investigating the potential conversion of lost assets into proceeds of crime. • Context: The action stems from a shareholder lawsuit reported on May 10, 2026. Jayaratne, a former chairman of the Ceylon Chamber of Commerce, emphasizes that institutional participation will help recover assets and reform regulatory oversight for the ICT/BPM and digital infrastructure sectors, involving authorities like the Data Protection Authority and Sri Lanka CERT.