Former finance minister Ravi Karunanayake arrested, granted bail in corruption case

Glocal
By Editor_1
Former Finance Minister Ravi Karunanayake, upon being released on bail by the Colombo Additional Magistrate Liyan Warusavithana, shortly after his arrest on Monday (August 31, 2026) – J. Sujeewa Kumar/ENCL

COLOMBO – Sri Lanka’s former Finance Minister and current parliamentarian Ravi Karunanayake who was arrested by the country’s anti-corruption commission on Monday (Aug 31) was released on bail by the Colombo Magistrate’s Court later in the day on two personal bail bonds of Rs 1 million each.

Colombo Additional Magistrate Liyan Warusavithana who ordered Karunanayake release also imposed a travel ban preventing him from leaving the country.

Karunanayake was arrested by the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) following a lengthy investigation into allegations that three employees were paid by the state while performing personal work for him.

According to CIABOC, Karunanayake, while in January 2015, serving as Finance Minister, used the National Lotteries Board to appoint two coordinating officers and a management assistant, purportedly for a special project of the Finance Ministry.

However, the Commission told court that the three employees did not work on the purported ministry project and also did not perform duties for the National Lotteries Board, despite their salaries being paid by the board.

Investigators estimated that approximately Rs 3.7 million had been paid in salaries to the three employees and alleged that they had instead been used for Karunanayake’s personal work. The appointment CIABOC told courts, had been made in violation of proper recruitment procedures and in the absence of approved vacancies, resulting in a financial loss to the government.

The Commission also told court that Karunanayake had been given four opportunities over a two-month period to appear before investigators and provide a statement but had failed to do so.

According to the investigating officer, CIABOC officials visited Karunanayake’s residence on Saturday (Aug 29) but were unable to find him there. The Commission had initially been informed that he was in the Nuwara Eliya area, but investigators later found that he was in the Hambantota area.

The Commission requested Karunanayake be remanded, arguing that releasing him could interfere with the ongoing investigation. It also said two individuals whose statements were required had not yet been located.

Appearing for Karunanayake, attorney Ashoka Weerasuriya told court that his client had not exerted pressure on any witnesses. He also informed court that Karunanayake was receiving treatment for heart disease and sleep apnoea.

After considering submissions from both sides, the Additional Magistrate ordered Karunanayake’s release on bail and imposed the foreign travel ban.

The arrest is part of a broader anti-corruption drive under President Anura Kumara Dissanayake’s administration, which has pursued investigations into alleged wrongdoing involving several former ministers and senior officials.

Former Health Minister Keheliya Rambukwella was also arrested earlier this month by CIABOC in connection with a separate investigation. He was subsequently granted bail by the Colombo Magistrate’s Court.

Several members of former President Mahinda Rajapaksa’s family have also faced investigations or legal proceedings relating to allegations including corruption and money laundering. They have denied the allegations.

–ENCL

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