News & market updates

CBSL told the Committee on Public Finance that no unusual activity was reported during the period of the Rs.13.2 billion fraud at National Development Bank (NDB.N0000), which has led to a fall in its share price and credit downgrades. CoPF criticised failures by auditors, board committees and supervisors and called for stronger controls, updated security standards and AI-based fraud regulations.

Opposition MP Faiszer Musthapha urged urgent action on widening financial security risks after a $2.5m Treasury phishing scam and a Rs.13.2bn theft linked to National Development Bank. He called for stronger cybersecurity, accountability and stricter bank supervision to protect investor confidence.

ASPI rose 0.65% (145.47 pts) to 22,695.00 while the S&P SL20 gained 0.6% to 6,244.64. Market turnover exceeded Rs. 4.8bn with Ceylon Tobacco Company dominating turnover (Rs. 2.4bn) even as foreign investors were net sellers, extending YTD foreign outflows to Rs. 27.6bn.

National Development Bank (NDB) reported 1Q 2026 PAT of Rs. 1.75 billion after recognising a Rs. 13.2 billion fraud impacting periods up to 1Q 2026. The bank said gross income rose 15.3% YoY to Rs. 26.5 billion, NII grew while NIM held at 3.9% and asset quality showed modest improvement.

Colombo Stock Exchange closed higher Monday with the ASPI up 0.65% at 22,695.00 and turnover of 4.81 billion rupees, driven by buying in banking counters. Top contributors included NDB, Dialog, Melstacorp and Colombo Dockyard, while Ceylinco Insurance and Windforce were among decliners.

Colombo Stock Exchange rose with the ASPI up 0.47% and banks leading turnover at Rs.467 million. Nations Trust Bank completed the transfer of HSBC Sri Lanka's retail banking (effective May 1), Beruwala Resorts will close May 1–Aug 30 for refurbishment, and Sampath Bank appointed an independent director.

National Development Bank (NDB) reported a post-tax profit of LKR 1.75 billion for 1Q2026 after recognising a LKR 2.67 billion fraud impact in the quarter (total fraud impact LKR 13.20 billion). Core operating income strengthened (total operating income LKR 12.77bn; gross income LKR 26.50bn, +15.3% YoY), NIM 3.9% and impaired loans ratio improved to 3.2%.

Colombo Stock Exchange closed lower with the ASPI down 0.38% to 22,549.53 and market turnover at 3.44 billion rupees; capital goods led turnover (984.6 million). Lion Brewery and Watawala Plantations were top positive contributors while Dialog Axiata, John Keells and Commercial Bank were top negatives; Brent rose above $113.

Sampath Bank PLC launched a fully integrated AI-driven lending ecosystem on its Vishwa platform, enabling instant, paper-light loan approvals and faster SME and leasing credit decisions. The system uses automated assessments and external credit insights to speed approvals and reduce documentation requirements.

Colombo market closed in the green for a fourth straight session as the ASPI rose 0.07% to 22,635 and the S&P SL20 gained 0.18% to 6,241.01; turnover was about Rs.4.2bn and foreign investors were net sellers of Rs.332.5m. CINS, BREW and JKH were among top contributors while diversified financials and banks led turnover.

Colombo Stock Exchange closed up, ASPI +0.07% to 22,635, with diversified financials leading turnover (Rs 1.98bn) helped by the debut of Janashakthi; total market turnover was Rs 4.19bn.

Colombo Stock Exchange ASPI rose 0.28% to 22,676.60 midday, led by gains in ACL Cables, Commercial Bank and John Keells. Capital goods led turnover with ACL contributing 91.8 million rupees, and National Development Bank said INED Shanil Fernando resigned effective April 27.

Colombo Stock Exchange opened higher with the ASPI up 0.11% to 22,592 and the S&P SL20 up 0.13% to 6,212 on turnover of Rs 799 million. Sampath Bank and John Keells were among top gainers while NDB, Access Engineering and LB Finance led declines; Browns Beach Hotels to delist with trading suspended from April 28.

National Development Bank (NDB.N0000) appointed KPMG as external auditor for the year ending 31 Dec 2026 after shareholder approval at the AGM on 27 March 2026; Ernst & Young ceased as auditor to comply with Banking Act Directions limiting auditor engagement to six years.

National Development Bank PLC has commissioned Deloitte Touche Tohmatsu India to conduct a forensic review into a Rs. 13.2 billion fraud, with findings to be reported directly to the Central Bank of Sri Lanka. The review, conducted in consultation with the CBSL Director of Bank Supervision, will examine controls, oversight and governance and may include interim updates.

National Development Bank PLC (NDB.N0000) has appointed Deloitte Touche Tohmatsu India to conduct an independent forensic review of a recently identified fraud, with Deloitte to report interim and final findings directly to the Central Bank of Sri Lanka. The board made the appointment in line with prior disclosures.

Colombo market ended marginally higher as the ASPI rose 0.06% to 22,639.81 despite net foreign selling of Rs.2.52 billion. Softlogic Life (AAIC) and Ceylon Tobacco (CTC) topped foreign selling and AAIC led turnover with a ~Rs.1.3bn crossing; insurance, food & banking dominated activity.

National Development Bank PLC's NDB Wealth hosted the Family Office Forum 2026 — Colombo Edition at Cinnamon Life, convening ultra-high-net-worth individuals and global practitioners to discuss deep tech, infrastructure, energy transition, governance and capital allocation.

Fintech Forum and UnionPay are driving adoption of digital payments in Sri Lanka, supporting the regulator‑approved 2024 National Card initiative to expand card usage. UnionPay has expanded local issuance since 2019 with partners including Commercial Bank and highlights QR adoption and reduced cash costs (~1.5% of GDP) as goals.

National Development Bank will engage a leading international firm for a comprehensive forensic audit into an internal fraud of 13.2 billion rupees. The Central Bank will oversee the audit, assess compliance and governance failures, and has directed NDB to strengthen internal controls while NDB meets capital and liquidity requirements.

CBSL has directed National Development Bank PLC (NDB) to engage a leading international firm to conduct a comprehensive forensic audit into an internal fraud and to strengthen internal controls. CBSL will receive interim and final reports and says NDB continues to meet capital and liquidity requirements and no other regulated institutions have reported losses.

Colombo Stock Exchange closed up as the ASPI rose 0.82% to 22,773.29 on Apr 17, 2026, led by gains in Central Finance (+5.83%), Hemas (+5.06%), Hayleys (+2.17%) and C T Holdings (+4.14%); NDB (-2.11%), HNB (-0.54%) and Commercial Bank (-0.47%) were top decliners.

Colombo Stock Exchange was up midday as the ASPI rose 0.65% to 22,735.61 and the S&P SL20 rose 0.51% to 6,262.75, with turnover at Rs 2bn. Top movers included Central Finance, Hayleys, Hemas and Browns Investments (up) while NDB, Melstacorp and HNB lagged; Commercial Bank listed scrip-dividend shares and Browns Beach Hotels will resume trading Apr 17–27.

Colombo Stock Exchange ASPI rose 0.40% to 22,218.06 at midday, with market turnover of Rs.1 billion and diversified financials leading turnover at Rs.263 million. Ceylon Tea Brokers said it will not proceed with the sale of DP Logistics and its shares were up 3.39% at Rs.12.20.

Ravi Karunanayake told Parliament that a multi-billion rupee fraud at National Development Bank has extended to involve 5–7 other banks and 4–9 non-banking financial institutions, blaming a 'systematic failure of accountability' by the central bank.

CBSL says deposits at National Development Bank PLC (NDB.N0000) are secure and unaffected by a disclosed internal fraud; assessments show NDB's capital and liquidity remain well above minimum regulatory requirements.

Fitch downgraded National Development Bank PLC’s National Long-Term Rating to 'A-(lka)' from 'A(lka)' and its subordinated-debt rating to 'BBB(lka)' with a Negative Outlook after an estimated LKR13.2 billion fraud (~1.3% of end-March assets) that weakened capital and profitability.