•  Ex-NSB Chair Pradeep Kariyawasam arrested for same and bailed

Former First Lady Shiranthi Rajapaksa was remanded until 13 October by the Colombo Magistrate’s Court yesterday (7) after being arrested by the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) over alleged financial irregularities involving the Siriliya Saviya Fund.

Rajapaksa was arrested at her residence on Poorwarama Road, Kirulapone, yesterday morning after CIABOC officers recorded a statement from her for nearly two hours. According to the Bribery Commission, the investigation concerns an alleged Rs 10 million transaction involving a State bank and an account linked to the Siriliya Saviya organisation.

The investigation centres on allegations that the Rs 10 million was obtained for the purchase of a CT scanner for the Lady Ridgeway Hospital for Children but that the scanner was not purchased using the funds. Investigators have also examined the provision of a PET scanner donated by China to the hospital.

Rajapaksa returned to Sri Lanka on Monday night (5) on a flight from Malaysia, after travelling overseas for medical treatment. She had left for Singapore on 16 September after being admitted to a private hospital in Colombo. She was subsequently taken directly from the hospital to the airport.

Following her return, she had been informed to appear before the Financial Crimes Investigation Division (FCID) on 13 October.

Meanwhile, attorneys representing Rajapaksa had filed an anticipatory bail application before the Maligakanda Magistrate’s Court on Monday, seeking an order preventing her arrest in connection with the ongoing investigation. The court subsequently issued notice on the FCID to present its submissions on the application.

Rajapaksa had earlier been summoned to appear before the FCID on 24 September to provide a statement concerning transactions linked to the Siriliya Saviya Foundation. She was overseas at the time.

In a related development, former National Savings Bank (NSB) Chairman Pradeep Kariyawasam was also arrested by CIABOC officers in connection with the investigation into allegations involving Rajapaksa. The court granted bail to him last evening. 

Kariyawasam, the husband of former Chief Justice Dr. Shirani Bandaranayake, had previously provided a statement to investigators concerning the transaction involving the State bank.