Sri Lanka’s Rajapaksa Family Faces Another Graft Case

Former Sri Lankan first lady Shiranthi Rajapaksa, wife of ex-President Mahinda Rajapaksa, was arrested on Wednesday by the country’s anti-corruption agency over allegations of misusing 10 million Sri Lankan rupees (about $30,000) linked to a charitable organisation she headed. She was later produced before a Colombo court, which remanded her in custody until October 13 as investigations continue.

The Commission to Investigate Allegations of Bribery or Corruption (CIABOC) said the case concerns funds obtained from the state-run National Savings Bank through the Siriliya Saviya organisation. Investigators allege the money was meant to help provide a CT scanner to Lady Ridgeway Hospital for Children in Colombo but that the scanner was not provided using the funds.

What Is The Siriliya Saviya Case?

Siriliya Saviya was an organisation headed by Shiranthi Rajapaksa during her husband’s presidency. The current investigation centres on an alleged 10 million-rupee transaction involving the organisation and National Savings Bank. CIABOC alleges that the money, intended for the purchase of a CT scanner for the children's hospital, was obtained but subsequently misused.

According to Sri Lankan reports, the funds were intended for a scanner costing considerably more than the amount raised. The defence has disputed the allegations, telling court that the Siriliya Saviya account still contains funds and that the organisation had not misappropriated the money. Defence lawyers also said that the account was frozen following a complaint after a change of government.

The case also involves the former chairman of National Savings Bank, Pradeep Kariyawasam, who was arrested separately over allegations that he facilitated the transfer of the funds without following proper procedures. He was subsequently released on bail and faces a foreign-travel restriction.

Rajapaksa had been summoned by the Financial Crimes Investigation Division (FCID) in connection with the wider investigation into Siriliya Saviya’s financial affairs. She returned to Sri Lanka on October 5 after receiving medical treatment overseas, while her lawyers had earlier sought anticipatory bail to prevent her arrest.

Why Has The Rajapaksa Family Come Under Scrutiny?

The arrest comes amid a renewed push by President Anura Kumara Dissanayake’s government to investigate alleged corruption involving members of the Rajapaksa family. Mahinda Rajapaksa served as president from 2005 to 2015 and remains a prominent figure in Sri Lankan politics.

Shiranthi’s arrest is also significant because she is the first former first lady in Sri Lanka to be arrested in a corruption investigation, according to reports citing the anti-corruption authorities. Her arrest follows other legal cases involving members of the Rajapaksa family, including her son Namal Rajapaksa, who is facing separate corruption allegations.

The allegations against Shiranthi Rajapaksa have not been established as criminal guilt. The case remains under investigation, and her defence has disputed the allegations concerning the Siriliya Saviya funds. The Colombo court’s decision to remand her allows investigators additional time to pursue the case.