NDB irregularities extend to involve other financial institutions: Sri Lanka legislator

A “systematic failure of accountability” by Sri Lanka’s central bank has led to the multi-billion rupee fraud at National Development Bank extend “to involve 5 to 7” other banks and up to 4-9 non-banking financial institutions, former finance minister Ravi Karunanayake told Parliament.

Raising a privilege issue, Karunanayake charged that CBSL and relevant authorities engaged in a “serious and continuing obstruction” to his duties by failing to answer multiple questions of “critical national importance” for several months.

“Questions remain unanswered, neither at parliament nor adequately responded at committee proceedings,” Karunanayake told Parliament last week.

These criticisms were a continuation from Thursday, where he lambasted the central bank’s supervision role in the National Development Bank fraud, pointing out that billions of rupees had gone out of the country without getting flagged, and pointed out that the same central bank which handles the EPF is investing in NDB Bank.

Source: Economy Next