People’s Bank loses Rs. 656 Million due to remittance system error

People’s Bank says an exchange rate application error in one currency within a specific remittance system led to some customers receiving excess amounts between May 2023 and March 2026, with the estimated financial impact amounting to around Rs. 656 million.

In a media release issued on May 16, 2026 the bank said the issue was recently identified and has now been fully rectified.

According to the bank, the error was related to the application of an exchange rate in a specific remittance system, which resulted in certain customers receiving higher amounts than they were entitled to during the affected period.

Following the detection of the issue, the bank said it immediately launched a detailed internal review and strengthened the relevant operational controls.

The matter is also being reviewed in consultation with the relevant regulatory and supervisory authorities, including Central Bank of Sri Lanka, in line with the bank’s commitment to transparency and sound governance.

People’s Bank said the estimated financial impact of the matter, amounting to approximately Rs. 656 million, had already been fully recognized in the bank’s financial statements during the affected period. It added that based on current assessments, no further financial impact is expected.

The bank also stated that recovery processes relating to the affected transactions have already begun and that progress has been made in recovering funds from the respective customers.

People’s Bank further assured customers and stakeholders that its day-to-day banking operations, digital platforms and customer services continue to function normally without interruption.

The bank said the issue has no material impact on its overall financial stability, profitability or the safety of customer funds and deposits, noting that it maintains an asset base of approximately Rs. 3.8 trillion.

People’s Bank added that it remains committed to maintaining high standards of operational integrity, governance and customer service.

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