Sampath Bank has denied allegations circulating on social media regarding its branch located on Dalada Veediya in Kandy and several of its officials, stating that the claims being shared online are false and misleading.

In a special statement, the bank said the allegations are linked to a complaint involving a loan facility worth nearly Rs. 51 million obtained by a customer of the branch.

The bank further stated that the matter is already under legal proceedings and that both the institution and its officials are fully cooperating with the relevant investigating authorities.

Sampath Bank also strongly rejected reports circulating on social media claiming that any of its officers had been remanded in custody in connection with the incident.

The statement added that since the case is currently before the courts, the bank is unable to provide further comments at this stage other than firmly denying the accusations and misleading statements being spread online.

Commercial Bank Group has delivered a robust financial performance for the first quarter of 2026, combining record asset growth with stronger profitability, improved asset quality, and liquidity ratios that remain far above regulatory benchmarks.

The banking giant reported total assets of Rs. 3.61 trillion by the end of March, becoming the first private banking group in Sri Lanka to cross the Rs. 3.5 trillion threshold. The achievement comes amid a broader recovery in banking activity following the institution’s lending-focused expansion strategy initiated in 2025.

A closer examination of the bank’s quarterly results reveals that loan growth continued to dominate operations. Gross loans and advances reached Rs. 2.16 trillion after expanding by over Rs. 71 billion within the first three months of the year. Deposits rose even faster, climbing by more than Rs. 171 billion to Rs. 2.87 trillion.

The accelerated growth in deposits significantly strengthened liquidity buffers, allowing the bank to maintain liquidity coverage ratios far above the minimum statutory requirement. Rupee liquidity coverage stood at 368.83%, while all-currency liquidity reached 282.77%, providing the institution with a substantial safeguard against market volatility.

The bank’s Net Stable Funding Ratio also remained exceptionally strong at 165.35%, exceeding the required 100% benchmark by a wide margin.

Commercial Bank executives attributed the performance to disciplined financial management and a continued emphasis on risk mitigation. Chairman Sharhan Muhseen said the bank’s strategic focus on strengthening the balance sheet and maintaining prudent controls had positioned the institution for sustainable long-term growth.

CEO Sanath Manatunge highlighted that the bank had continued to strengthen governance standards, compliance measures, sustainability initiatives, and support for national economic priorities while pursuing expansion.

The group’s financial performance reflected this stability. Total operating income increased to Rs. 50.84 billion, while net operating income surged 21% to Rs. 47.66 billion. Although operating expenses rose by nearly 16%, the increase was offset by stronger revenue generation and reduced impairment costs.

Provisioning expenses dropped significantly from the previous year, reflecting earlier precautionary provisioning measures. Nevertheless, the bank stated it continues to monitor sectors vulnerable to global and domestic economic disruptions and maintain adequate protective overlays.

Profitability ratios also improved steadily. Return on assets before tax rose to 3.21%, while return on equity climbed above 21%, signalling stronger earnings efficiency and shareholder returns.

The bank’s net interest margin remained stable at 4.5%, despite pressure from changing interest-rate conditions. Meanwhile, the cost-to-income ratio improved slightly, indicating enhanced operational efficiency.

Another notable improvement came in asset quality. The Stage 3 impaired loan ratio fell to 1.34%, down from 1.54% at the end of 2025. Provision coverage on impaired loans also strengthened to 75.04%, suggesting that the bank remains cautious despite improving credit conditions.

Commercial Bank PLC, considered separately from the group, also posted strong earnings growth. Profit before tax reached Rs. 26.64 billion, while profit after tax rose to Rs. 17.17 billion during the quarter.

Financial analysts say the results position Commercial Bank among the strongest-performing financial institutions in Sri Lanka as banks continue navigating post-crisis recovery, rising taxation, and uncertain global economic conditions.

Sri Lanka’s proposed Inland Revenue (Amendment) Bill of 2026 signals a decisive shift toward stricter tax enforcement, introducing criminal liability for taxpayers who fail to comply with key obligations such as registration, filing returns and responding to official notices. Tax professionals say the legislation marks one of the strongest compliance drives introduced in recent years as the Government attempts to widen the tax base and improve revenue collection amid ongoing economic reforms.

At the centre of the proposed legislation is a new Chapter XVIIA titled “Prosecution of Offences,” particularly Section 185A, which establishes the legal framework for prosecuting individuals who repeatedly ignore tax obligations. Under the new provisions, taxpayers who fail to register for a Taxpayer Identification Number (TIN) within 30 days after their first taxable year, or neglect to submit annual income tax returns within the stipulated deadlines, could face criminal proceedings.

The Bill also extends liability to those who fail to cooperate with Inland Revenue Department (IRD) investigations. Taxpayers who refuse to appear before officials for inquiries, fail to submit annual information statements, or ignore requests for additional tax documentation may also be prosecuted under the proposed law.

Tax experts describe the amendment as a major transformation in the country’s revenue administration framework. KPMG Sri Lanka Head of Tax and Regulatory Suresh Perera noted that the proposed law creates a direct pathway from administrative non-compliance to criminal prosecution, significantly raising the consequences for taxpayers who disregard statutory obligations.

According to the draft legislation, legal action cannot begin immediately. Before prosecution is initiated, the Commissioner General of Inland Revenue (CGIR) must issue a formal written notice to the taxpayer concerned. The notice will clearly state that legal proceedings will follow unless the individual complies with the law within 30 days.

Experts say this period effectively serves as a final opportunity for defaulters to regularise their affairs before facing court action. However, failure to comply within the specified timeframe, without what the law terms a “reasonable cause,” would amount to an offence under the Act.

Those found guilty after a summary trial before a Magistrate could face a fine of up to Rs. 400,000, imprisonment for up to six months, or both. Legal analysts believe the inclusion of custodial punishment demonstrates the Government’s determination to discourage habitual tax avoidance and improve compliance levels.

The proposed amendments arrive at a time when Sri Lanka is under pressure to strengthen public finances and increase state revenue under broader fiscal restructuring efforts. Authorities have repeatedly highlighted weaknesses in tax collection and the need to improve compliance among individuals and businesses.

Observers say the legislation sends a strong warning that ignoring tax notices will no longer result merely in administrative penalties or interest charges. Instead, persistent non-compliance may now carry criminal consequences, placing taxpayers directly within the reach of the judicial system.

Sri Lanka’s biggest banking fraud scandal is rapidly evolving into a case study of systemic regulatory failure, digital manipulation, and institutional complacency, as confidential forensic findings reveal how Rs. 13.2 billion allegedly vanished from National Development Bank PLC (NDB) over nearly two years.

Investigators now believe the operation exploited multiple weaknesses buried deep inside the bank’s payments infrastructure. Highly sensitive forensic findings from Deloitte India — appointed under direct supervision of the Central Bank of Sri Lanka (CBSL) — show that the transfers were not random acts of theft, but carefully timed and technically engineered movements executed during “weekend blindspots.”

According to forensic investigators, the suspects carried out fraudulent ledger transfers almost exclusively on Friday nights and public holiday weekends, periods when NDB’s automated monitoring systems allegedly operated under lower fraud-detection sensitivity. The reduced scrutiny created ideal conditions for large-scale manipulation of general ledger accounts without immediate detection.

The forensic audit has also reportedly uncovered an extensive cryptocurrency laundering network. Investigators traced the siphoned funds through dozens of micro-transactions routed across approximately 64 intermediary accounts before conversion into cryptocurrency using global exchanges, primarily Binance. Sources familiar with the investigation say the transaction layering techniques closely resemble international cyber-financial laundering operations.

Court-linked investigative findings indicate the fraud may have remained undetected because the bank’s general ledger systems allegedly escaped meaningful audit validation since 2024. CID investigators are also probing claims that senior operators manipulated internal logs and erased transaction histories immediately after fund movements occurred.

Perhaps most alarming are findings surrounding “batch processing exploitation.” Investigators believe fraudulent ledger entries were inserted minutes before overnight processing cycles closed, enabling transactions to pass through the system before automated fraud engines scanned balances individually. The suspects allegedly split billions of rupees into hundreds of smaller entries deliberately designed to remain below alert thresholds.

The investigation has widened dramatically beyond frontline employees. Colombo Chief Magistrate Asanga S. Bodaragama has reportedly directed authorities to arrest any senior executive found to have suppressed or ignored early warning signals flagged internally or by regulators. The court has also ordered the seizure of internal audit division logs after investigators questioned how massive ledger discrepancies repeatedly escaped scrutiny.

Deloitte’s role itself highlights the severity of the crisis. Interim findings are reportedly bypassing NDB’s executive management entirely and are being delivered directly to the CBSL and the CID Computer Crimes Division to prevent possible internal interference.

The scandal has already triggered serious institutional fallout. Fitch Ratings downgraded NDB to ‘A-(lka)’ with a Negative Outlook, citing weakened internal controls and uncertainty surrounding the ongoing investigation.

Meanwhile, the Parliamentary Committee on Public Finance (CoPF), chaired by Dr. Harsha de Silva, has begun scrutinising whether CBSL supervision departments failed to identify growing irregularities that allegedly accumulated since mid-2024.

Although the CBSL insists depositor funds remain secure and capital adequacy ratios remain above minimum requirements, the scandal has exposed vulnerabilities at the core of Sri Lanka’s banking oversight structure.

The International Monetary Fund (IMF) says the Sri Lankan economy is performing well and that the government’s commitment to reforms remains strong.

Speaking at a press briefing held on Thursday (May 14), IMF Communications Department Director Julie Kozack stated that the IMF will continue to work closely with Sri Lankan authorities to assess how best the institution can continue supporting the country.

Kozack noted that Sri Lankan authorities have reached a Staff-Level Agreement for the combined fifth and sixth reviews under the Extended Fund Facility (EFF) programme.

She explained that completion of the review remains subject to approval by the IMF Executive Board, with the relevant Board meeting expected to take place in the coming weeks.

“There were a few prior actions that needed to be completed before we could bring the programme to our Executive Board, and these were the restoration of the cost recovery electricity and fuel pricing, while also protecting the vulnerable,” she said.

According to Kozack, once the review is approved by the IMF Executive Board, Sri Lanka will gain access to approximately US$ 700 million in financing.

She further stated that the Sri Lankan economy and its people have demonstrated “remarkable resilience” in overcoming recent economic shocks.

“The ambitious reforms that Sri Lanka has been painstakingly taking over the last several years under the programme are bearing fruit. And part of the economic resilience that we’re seeing and the strong outcomes that we’re seeing for the Sri Lankan economy are underpinned by these reforms,” Kozack added.

Science and Technology Minister Chrishantha Abeysena says Provincial Council elections will be held within this year.

Speaking at a public event in Kandy on Friday (May 15), the Minister stated that the government had been compelled to prioritise more urgent national challenges, including the impact of Cyclone Ditwah.

However, he stressed that there is no intention to delay the Provincial Council polls.

“There will be a Provincial Council election within this year. There is no need to worry about it being delayed,” Abeysena said.

The Minister did not specify an exact date for the election.

Prime Minister Dr. Harini Amarasuriya says the government has managed the ongoing energy crisis in a manner that avoids placing hardship on the public, while cautioning that the crisis has not yet fully ended.

The Prime Minister made these remarks while addressing the sixth meeting of the committee appointed to ensure the uninterrupted functioning of the public service, held today (May 15) at the Prime Minister’s Office.

According to the Prime Minister’s Office, the meeting focused on sustainable energy management and future measures to address ongoing energy-related challenges.

Dr. Amarasuriya stated that, unlike in some other countries, Sri Lanka has managed the crisis without causing fuel shortages, long queues, or major power cuts by absorbing associated costs and implementing a sustainable management process.

However, she stressed that continuous vigilance remains necessary as the situation has not yet fully stabilised.

During the meeting, it was decided to appoint an “Energy Manager” for every government institution in order to promote energy conservation within the public sector and encourage the use of renewable energy sources.

Discussions were also held on transforming government buildings in line with the Green Building Concept under the “Clean Sri Lanka” national programme.

Attention was drawn to the possibility of introducing future fuel concessions, replacing the current odd-even fuel distribution system with a QR code-based method, and increasing fuel quotas.

Officials informed the meeting that sufficient fuel stocks are currently available until August and that requests have already been made to secure fuel supplies for the remainder of the year.

The meeting also focused on sustainable electricity consumption management, including programmes under the Clean Sri Lanka initiative aimed at educating schoolchildren on energy conservation.

According to the Prime Minister’s Office, discussions included recognising households that effectively manage electricity consumption and promoting awareness among students through schools.

Measures to introduce the Green Building Concept in future construction projects were also discussed.

The Prime Minister further emphasized the need to ensure an uninterrupted and adequate electricity supply during Vesak Week.

The meeting was attended by Secretary to the Prime Minister Pradeep Saputhanthri, Chief of Staff to the President Prabath Chandrakeerthi, Senior Additional Secretary to the President G.G.S.P. Roshan, as well as senior officials from the Ministries of Public Administration, Health, Transport, and Energy.