News & market updates

Fitch downgraded National Development Bank PLC’s National Long-Term Rating to 'A-(lka)' from 'A(lka)' with a Negative Outlook after a fraud of about LKR13.2bn, which Fitch says has weakened the bank's capitalisation and profitability.

The Committee on Public Finance raised alleged fraud at National Development Bank (NDB) at its 07 Apr 2026 meeting and the Central Bank said an initial investigation is underway. The Committee cited corporate governance lapses, supervision deficiencies and directed immediate corrective measures.

National Development Bank listed 5,308,377 ordinary voting shares effective April 10 from a scrip dividend (1:80.4180744886808); its stock traded at 116.75 (up 3.00). Ceylon Land & Equity listed 614,156,734 shares after a rights issue that raised 4,299,097,138 rupees, and trading in HNB Finance was halted pending disclosure.

Colombo Stock Exchange closed up: ASPI +1.30% (284.12 pts) to 22,128.66. Top contributors included John Keells, Melstacorp and National Development Bank; turnover was Rs5.016bn and HNB Finance announced a Rs2,499,529,714 rights issue (2 for 9).

Colombo Stock Exchange closed down as the All Share Index fell 0.33% to 21,844.54. National Development Bank (+3.41%), Nations Trust Bank (+1.65%) and Janashakthi Insurance (+8.74%) led gains, while Dialog Axiata (-2.47%), John Keells (-1.02%) and Melstacorp (-1.14%) were top decliners; Cargills Bank listed 294,200,000 rights shares raising Rs.2,500,700,000.

National Development Bank (NDB) reported a Rs 13.2 billion fraud, leaving an unaudited Q1 2026 after-tax loss of about Rs 4 billion and a net impact of about Rs 7 billion. IMF and the Central Bank say the issue is contained to NDB, the bank remains well-capitalised and liquid, and investigations and corrective actions are underway.

Colombo Stock Exchange fell midday with the ASPI down 0.72% to 21,759.64 and market turnover at 773 million rupees. National Development Bank and L B Finance were among top gainers, John Keells and HNB among decliners; Cargills Bank listed 294,200,000 shares after a rights issue raising 2,500,700,000 rupees and Colombo Dockyard appointed Capt Jagmohan chairman.

National Development Bank PLC said employee fraud led to a loss of approximately 13.2 billion rupees, prompting an opposition legislator to question the Central Bank's supervision for failing to flag large outflows. The Central Bank said prudential ratios remain above minimum regulatory requirements.

NDB Bank shares fell 15.13% to Rs.110.75 after the CSE lifted a trading suspension related to a Rs.13.2 billion fraud. Over 4.1m NDB shares traded (Rs.455m); most peer banks rose but the banking index fell 0.8%, with NDB the largest negative contributor to a 67.05-point ASPI drop.

National Development Bank (NDB) disclosed an internal CEFT-related fraud of about Rs.13.2 billion, with Other Financial Assets Gross rising to Rs.12.22bn in 2025. The bank has fully provided for the loss (unaudited 1Q2026 loss after tax ~Rs.4bn; net impact ~Rs.7bn), expects Tier‑1 capital to fall to ~9–10%, and the CBSL has suspended a Rs.6.46/share dividend.

ASPI fell 0.45% to 21,032.46 as foreign net outflows reached Rs.1.099bn over two days (Rs.294m yesterday, Rs.805m prior). Banking led turnover (49%); key negatives included NDB, Ceylinco (CINS), Melstacorp and JKH, while Galle Face Capital (WAPO) gained.

Colombo Stock Exchange ASPI rose 4.21% to 21,917.60 as a US two-week ceasefire announcement drew investors back, with turnover at Rs.6.61 billion and banks driving activity. Top contributors included John Keells, Commercial Bank, Hatton National Bank, Dialog Axiata and Colombo Dockyard.

Colombo Stock Exchange closed down 0.45% to 21,032.46, led by National Development Bank plunging 15.13% to Rs.110.75. Ceylinco Holdings fell 2.90%, while Hatton National Bank, LOLC and ACL Cables were among the day’s top gainers.

National Development Bank's trading halt was lifted and its shares fell to Rs.115.00 from Rs.130.50 after investors reacted to a reported Rs.13.4 billion fraud. The ASPI was down 0.12% at 21,100.65 and Vidullanka authorised acquiring 100% of the 4.5MW Gurugoda mini-hydro plant.

President Dissanayake chaired a meeting with bank and financial institution heads to promote the National QR Payment Promotion Initiative; CBSL Governor Weerasinghe said shifting from ATM cash services to the new digital method will cut banks' ATM costs and provide a more efficient, secure payment option.

National Development Bank PLC reported an internal fraud totalling approximately Rs. 13.2 billion (initially disclosed as Rs. 380 million on Apr 2, revised on Apr 6). The Central Bank said deposits are safe, suspended dividends and discretionary payouts, and imposed austerity measures while providing regulatory backstops.

National Development Bank (NDB) reported an employee fraud causing an estimated loss of about LKR 13.2 billion. The Central Bank said customer deposits were unaffected and NDB's capital and liquidity ratios remain above regulatory minimums.

National Development Bank PLC (NDB) has reported an internal fraud that could lead to a significant loss. CBSL says customer deposits were not affected, its preliminary assessment shows NDB's capital and liquidity ratios remain above regulatory minima, and temporary CBSL liquidity support is available if needed.

National Development Bank said employee fraud caused an estimated loss of 13.2 billion rupees and its CSE trading was halted. Commercial Bank, Sampath Bank and Hatton National Bank traded lower and the ASPI was down 0.34% at midday.

National Development Bank PLC reports the fraud will result in an unaudited loss after tax of approximately LKR 4.0 billion for the quarter ended 31 March 2026. The bank says customer balances were not affected; the cash dividend payable on 6 April 2026 is suspended while the scrip dividend will proceed.

HNB MD Damith Pallewatte defended 11% SME lending as reflecting higher funding costs and said HNB has disbursed Rs.1.024bn (102%) of its Rs.1bn MSME allocation. Commercial Bank (Rs.1.027bn, 103%) and NDB (Rs.400.286m, 100%) also met or exceeded their allocations amid wider sector criticism over concessional credit rollout.

National Development Bank PLC says internal employee fraud caused an estimated LKR 13.2 billion loss and trading has been halted. The bank says customer balances are intact, has made provisions (Q1 loss after tax est. LKR 4.0bn), and the CBSL has extended regulatory support and suspended the cash dividend.

President Anura Kumara Dissanayake chaired a meeting with bank and financial institution heads to launch the National QR Payment Promotion Initiative and seek banking sector support for rapid adoption. The Central Bank said the shift will reduce ATM cash transaction costs and offer a more efficient, secure payment method.

Colombo Stock Exchange ASPI closed up 0.04% to 21,126.60 as banking stocks faced selling pressure after NDB disclosed an internal fraud loss of 13.4 billion rupees and trading in NDB was halted. DFCC, Cargills Bank and Access Engineering led gains while Commercial Bank, HNB and Melstacorp were laggards; turnover was Rs.3.029bn.

National Development Bank PLC confirmed it has identified fraudulent activity involving internal personnel colluding with external parties, has reported the matter to law enforcement and is conducting investigations; the bank says customer deposits and day-to-day operations are unaffected.

National Development Bank PLC (NDB) said it detected an employee-linked fraud with preliminary exposure of approximately Rs. 380 million and investigations are ongoing. The bank warned the final amount could be higher, has informed the Central Bank, and says customer deposits and operations are unaffected.