By Amrit Muttukumaru
Preamble:
An Investigation into Corporate Governance and Regulatory Oversight in Sri Lanka's Banking Sector.
This article, authored by public interest activist Amrit Muttukumaru, raises critical concerns regarding corporate governance, regulatory transparency, and potential conflicts of interest within Sri Lanka's banking landscape. Following a massive internal fraud at the National Development Bank (NDB), serious questions are mounting over the Central Bank of Sri Lanka's (CBSL) decision to allow the NDB's incumbent Board of Directors to co-manage the ensuing forensic audit. Highlighting intricate connections between prominent global auditing firms, NDB board members, and top-tier political advisors to the President, the author argues that the integrity of the investigation may be deeply compromised. The piece serves as a compelling call to action, demanding stringent accountability, immediate structural interventions, and impartial oversight to safeguard the nation's financial system.
Although the country must get to the bottom of the egregious Coal Scam and other credible instances of corruption which includes the missing USD 2.5 Million from the Treasury, the implications of the NDB Fraud is far more serious since it affects the entire banking/financial system of the country.
NDB ‘Board Director’ Sujeewa Mudalige is also Chairman of the ‘Audit Committee’
The CBSL in its ‘Update’ of 17 April 2026 on the NDB Fraud ominously states:
“CBSL wishes to inform the public that NDB in consultation with CBSL is finalizing arrangements to engage a leading international firm with experts from overseas to conduct a comprehensive forensic audit into the incident.”
This ‘Update’ raises two issues:
1) Why is CBSL only referring to a “leading international firm”? Why is CBSL fighting shy of NAMING the firm?
2) Why is it “NDB in consultation with CBSL”? Given the shocking NEGLIGENCE of the NDB ‘Director Board’ should not CBSL engage the forensic auditors ON ITS OWN?
I am led to believe that the chosen forensic auditors are DELOITTE INDIA. I stand to be corrected on this.
IF it is Deloitte India, it raises troubling issues:
1) NDB ‘board director’ Sujeewa Mudalige is a former Managing Partner of PwC Sri Lanka.
2) PwC no longer exists in Sri Lanka. It is now part of the Deloitte worldwide family.
3) However in INDIA and other worldwide locations the BIG FOUR are up and running – Deloitte, EY, KPMG, and PwC and compete with each other.
Sujeewa Mudalige
NDB ‘board director’ Sujeewa Mudalige is also Chairman of the ‘Audit Committee’
As stated earlier he is a former Managing Partner of PwC Sri Lanka which is now part of the Deloitte family.
IF NDB in cahoots with the CBSL is engaging Deloitte India for the forensic audit, is there not something ‘fishy’ tantamount to a ‘conflict of interest’?
It was to AVOID such situations that I stated in my article – “NDB Directors must be removed and 3 Member ‘Interim Council’ appointed by AKD” (which no newspaper was willing to publish):
“It is a reflection of the rot in governance in this country that the NDB Bank PLC Director Board is still in office despite its shocking NEGLIGENCE to prevent the MASSIVE internal FRAUD estimated at a MINIMUM of Rs. 13.2 Billion. Their removal is necessary for their shocking negligence and the potential to TAMPER with evidence to save their skins.
Since the INTEGRITY of most regulatory agencies have been compromised in some shape or form over the years – SEC, CBSL, CA Sri Lanka and BASL, it is recommended that the proposed 3 member ‘Interim Council’ to replace the NDB Director Board although not ideal must be FORTHWITH appointed by President Anura Kumara Dissanayake who is also Minister of Finance. It must subsequently receive CONFIRMATION from the Governing Council of the OPA within one week.”
NDB External Auditors & AKD
The external auditors of NDB Bank PLC is Ernst & Young of which the Managing Partner is Duminda Hulangamuwa – Senior Economic Adviser to AKD. On this basis alone is not Hulangamuwa’s position as adviser to AKD fraught with ‘conflict of interest’?
Could it not be surmised that it is in the interest of Hulangamuwa to put pressure on President AKD who is also Minister of Finance (under which CBSL falls) to ensure that the CBSL goes along with the choice of NDB for the forensic audit?
Conclusion
I once again re-iterate, NDB and CBSL must CLARIFY whether Deloitte India is their choice for the forensic audit.
One area in which successive governments, oppositions in Sri Lanka and the media have CONSENSUS is in giving a FREE PASS to the PRIVATE SECTOR which for the most part is the MOTHER of political corruption.
The country looks forward to witness whether the HIGH PROFILE private sector NDB board directors concerned and external auditors EY will be held ACCOUNTABLE for their shocking NEGLIGENCE and any COLLUSION PROBED by parliamentary oversight committees – Committee on Public Enterprises (COPE) and Committee on Public Finance (COPF) of which leading opposition member Dr. Harsha de Silva is Chairman.
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