COLOMBO, Sri Lanka – Sri Lankan anti-corruption authorities arrested former first lady Shiranthi Rajapaksa on Wednesday over alleged misuse of 10 million rupees obtained from a state-owned bank for a medical scanner at a children’s hospital.
The Commission to Investigate Allegations of Bribery or Corruption, or CIABOC, arrested Rajapaksa at a residence in Colombo. She was later produced before the Colombo Chief Magistrate’s Court.
The court ordered her remanded until Oct. 13 while the investigation continues.
Rajapaksa, 73, is the wife of former President Mahinda Rajapaksa. She has denied the allegations and said through her lawyer that she will contest the case.
The 10 Million-Rupee Donation
The investigation centers on 10 million rupees transferred by the National Savings Bank to the Siriliya Saviya Foundation, an organization led by Rajapaksa.
Investigators say the money was obtained for the stated purpose of providing a CT scanner to Lady Ridgeway Children’s Hospital in Colombo.
The investigation has not established that the money was used to purchase the scanner.
Investigators have also said the equipment ultimately provided to the hospital was a scanner donated by China rather than equipment purchased with the funds raised through the foundation.
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The question of what happened to the 10 million rupees is now part of the corruption investigation.
Court Action Follows Arrest
CIABOC arrested Rajapaksa after questioning her about the Siriliya Saviya investigation.
The arrest followed weeks of financial-crime inquiries. Rajapaksa had previously been summoned by the Financial Crimes Investigation Division to provide a statement about transactions involving the foundation.
She left Sri Lanka in September for medical treatment before returning on Oct. 5.
Her lawyers had sought anticipatory bail before her return, citing the possibility that she could be arrested. The court later remanded her after CIABOC made the arrest.
The former chairman of the National Savings Bank, Pradeep Kariyawasam, was also arrested in connection with the investigation. The court released him on bail.
Allegations Remain Under Investigation
CIABOC alleges that Rajapaksa obtained the 10 million rupees from the state bank and committed offences under Sri Lanka’s corruption laws and the Public Property Act through the alleged misuse of the funds.
The arrest and remand do not establish that she misappropriated the money.
Investigators must still establish how the funds were used and whether the transactions violated Sri Lankan law.
Rajapaksa has denied wrongdoing.
The investigation also covers other financial transactions linked to Siriliya Saviya. Officials have previously questioned bank officials and other people connected to the transaction.
Wider Rajapaksa Scrutiny
The case adds to renewed legal scrutiny of members of the Rajapaksa family.
Rajapaksa’s son, Namal Rajapaksa, is separately facing legal proceedings involving alleged bribery and money laundering. He has denied wrongdoing.
The investigations have gained prominence under President Anura Kumara Dissanayake’s government, which came to power promising stronger action against corruption.
The government’s broader anti-corruption policy does not by itself establish the merits of individual cases.
For Shiranthi Rajapaksa, the immediate issue is the 10 million-rupee transaction and whether investigators can establish that the money was unlawfully used.
Her remand until Oct. 13 gives investigators additional time to pursue the case.
Reporting Credit: Commission to Investigate Allegations of Bribery or Corruption; Colombo Chief Magistrate’s Court; National Savings Bank; Financial Crimes Investigation Division; Siriliya Saviya Foundation; Shiranthi Rajapaksa’s legal representatives.
