By: Adolf
April 17, LNW (Colombo): The Rs. 13.5 billion fraud at NDB—the largest in Sri Lanka’s banking history—has sent shockwaves through the financial system. While NDB bears the immediate loss, serious questions now arise about the role other banks played in enabling this colossal heist. Foremost among them is Sampath Bank.
1 st Transaction in 2023
According to sources, the very first fraudulent transfer in this saga—a sum of Rs. 5 million—was directed to Sampath Bank’s Mullaitivu branch back in 2023. If true, that transaction was the spark that gave perpetrators the confidence to escalate their scheme into a multi-billion rupee operation. This raises an unavoidable question: Why was this initial transfer not flagged as suspicious to the Central Bank of Sri Lanka (CBSL)? Did Sampath Bank’s internal controls fail at the first hurdle?
Leaders
Let us examine the gatekeepers. Mr. Harsha Amarasekera, Chairman of Sampath Bank, chairs numerous companies including Port City. One must ask: does his sprawling portfolio leave him with no time to scrutinise red flags within his own bank? Then there is Ms. Aroshi Nanayakkara, a member of the board’s audit committee (and previously its chair). What oversight did she and the committee exercise? Where were the external auditors, and indeed the CBSL’s own auditors, when basic alarm bells should have been ringing?
Ultimately, accountability rests with the Bank’s CEO and CFO. Their highly paid roles demand daily vigilance over transaction monitoring and risk controls. Yet, despite not losing money directly, Sampath Bank appears to have been a crucial conduit—the gateway that lent legitimacy to the fraud. That signals dangerously poor risk controls. Meanwhile, the CBSL is taking public thrashing for failures that bank executives are primarily paid to prevent. This deflection is unacceptable by the depositors.
Sampath Bank
Sampath Bank may have avoided a direct financial hit, but reputational damage is another matter. The fact that money was systematically drained from NDB through Sampath’s accounts suggests systemic lapses. The banking public deserves transparency. Therefore, the Chairman and CEO of Sampath Bank must come forward publicly. They need to clarify, without evasion, exactly what their bank knew, when it knew it, and why a suspicious transaction as early as 2023 was not reported. Silence is no longer an option. Setting the record straight is not just about protecting one institution—it is about restoring trust in Sri Lanka’s entire banking system. MP Ravi Karunanayake has already raised a privileges issue. He should ask for the CBSL forensic report and shame the perpetrators for their total negligence of their public duty for public money and livelihoods of Lankans.
