Central Bank restricts Ernst & Young partners following Rs. 13.6 billion NDB fraud
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The Central Bank of Sri Lanka has asked Ernst & Young not to assign licensed bank audits to two partners who audited National Development Bank PLC. This follows the disclosure of a Rs. 13.6 billion internal fraud.
The fraud reportedly ran undetected for three years and was discovered after NDB’s 2025 financial accounts were certified. The regulator has also required NDB to reconstitute its Board Audit Committee.
Bank Supervision Director R.R.S. de Silva Jayathilaka disclosed the actions to the Committee on Public Finance on 5 November. Committee Chairman Dr. Harsha de Silva stated that such regulatory steps do not need to be kept completely confidential.
The Central Bank clarified that the restriction applies only to the engagement and quality assurance partners, confirming that Ernst & Young remains eligible to audit licensed banks under the Banking Act.
Read the original reports
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Sri Lank regulator restricts specific Ernst & Young partners following NDB fraud
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NDB fraud: CBSL bars EY partners from banking audits
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NDB මූල්ය වංචාව හෙළි වූ පසු එහි විගණක ආයතනයට බැංකු විගණනය තහනම්
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CBSL clarifies ruling on EY Partners who audited NDB Bank | Daily FT
How the story developed
- EසිThis storyThe Central Bank restricted two Ernst & Young partners following a 13.6 billion rupee fraud.
- සිThe Colombo Commercial High Court dismissed a petition alleging a 13.2 billion rupee bank fraud.
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