Sri Lanka, May 6 -- Serious concerns regarding regulatory failures surrounding a reported 13.2 billion rupee fraud at NDB Bank were raised in Parliament, with questions being asked as to how authorities failed to detect alleged irregularities for over three years. MP Ravi Karunanayake described the matter as one of grave national importance while pointing to issues involving financial system integrity and statutory accountability.

The role of the Central Bank of Sri Lanka, specifically its Bank Supervision Department, came under scrutiny for failing to identify or act on the alleged fraud despite legal obligations. Reports suggest at least two other banks flagged suspicious transactions to the Financial Intelligence Unit approximately 1...