The Colombo Chief Magistrate’s Court has granted bail to former Minister of Tourism and Aviation Prasanna Ranatunga, who was arrested by the Bribery Commission on corruption charges involving an alleged irregular insurance deal worth over Rs. 4.7 million. The case has drawn public attention as one of the latest high-profile corruption investigations in Sri Lanka’s political sphere.
Former Minister Prasanna Ranatunga was produced before Colombo Chief Magistrate Asanga S. Bodaragama following his arrest by the Commission to Investigate Allegations of Bribery or Corruption on Tuesday (12). The court released him on a cash bail of Rs. 100,000 and two sureties of Rs. 5 million each while also imposing a travel ban.
The charges against Ranatunga stem from his tenure as Minister of Tourism and Aviation. He is accused of illegally appointing a private brokerage firm named My Insurance Brokers to facilitate direct medical insurance for employees of four institutions under the Ministry of Tourism: the Sri Lanka Tourism Development Authority, the Sri Lanka Tourism Promotion Bureau, the Sri Lanka Institute of Hotel Management, and the Sri Lanka Convention Bureau.
The Bribery Commission alleged that through this appointment, Ranatunga had committed an act of corruption by allowing an undue advantage to the brokerage company, resulting in a financial loss to the Sri Lanka Insurance Corporation. According to the Commission, the company received a commission payment of Rs. 4,750,828.72, which would otherwise not have been necessary if the insurance coverage had been obtained directly from the Sri Lanka Insurance Corporation.
Bribery Commission Chief Inspector Gamini Abeysinghe presented the investigation report to the court. He stated that the process could have been managed internally by the Sri Lanka Insurance Corporation without using an external brokerage. However, he claimed that Ranatunga had influenced officials to name My Insurance Brokers as the intermediary.
“While it was possible to obtain direct medical insurance for employees of 04 institutions under the Ministry of Tourism from the Sri Lanka Insurance Corporation, through the intervention of this brokerage company, the Sri Lanka Insurance Corporation has paid an undue amount of Rs. 47,50,828 as a commission to that company.
This has not only caused an undue advantage to the company but also caused a loss to the Sri Lanka Insurance Corporation. Although no brokerage company was mentioned in the procurement regarding that process, this suspect is the one who pressured the Chairman and Director General of the Tourism Authority to name it as a brokerage company and pay the commission.
During questioning of the owner of that company, it was revealed that the same amount had been credited to 05 other accounts. It is necessary to investigate who owns those accounts.
In connection with the investigation, the former Chairman and Director General of the Tourism Development Authority have been summoned to the Bribery Commission. After recording the statements, the suspect has called them and pressured them.
Therefore, we request the court to remand the suspect so that the witnesses are not influenced.”
President’s Counsel Anil Silva, appearing on behalf of Ranatunga, denied all allegations, stating that the decision in question was made in good faith during the Covid-19 pandemic to assist stranded Sri Lankan migrant workers.
“Sir, during the Covid pandemic, their relatives requested the government to bring back the migrant workers to Sri Lanka. Although they requested sponsorship from hotels and private institutions, no one came forward. Sri Lankan Airlines said that they would provide a plane at a reasonable price but the government would bear the cost.
Later, this suspect minister instructed the Chairman and Director General of the Tourism Development Authority to release the relevant money to the brokerage company through the Sri Lanka Insurance Corporation. With that money, Sri Lankan workers who were in Kuwait during the Covid pandemic were brought back to the island.
As you say, this suspect did not name the brokerage company personally. It was done in an open discussion. We are ready to face trial. This is to remand Prasanna Ranatunga before the 21st.”
President’s Counsel Nalin Ladduwahetti also addressed the court regarding the health condition of his client.
“Your Honor, this suspect has undergone surgery and cannot eat normally. He should be fed small meals every four hours. He should also be given a special protein mixture. Otherwise, his life will be at risk.
Therefore, I request the court to consider these factors when granting him bail.”
Colombo Chief Magistrate Asanga S. Bodaragama, after considering both sides, delivered his order on the bail application.
“At this point, what needs to be considered is not the facts of the case but the suspect’s bail application. Corruption under Section 70 of the Bribery Act is an offence for which this court can grant bail.
Although the Bribery Commission verbally stated that this suspect influenced witnesses, it did not mention it further in the report. Also, statements were not taken from the relevant witnesses in this regard. No facts have been revealed that the suspect influenced witnesses in relation to the investigation from 2022 to date.”
The court concluded that the Bribery Commission had not provided sufficient evidence to justify remanding the suspect and granted bail under strict conditions. The case will continue as part of the Commission’s ongoing investigation into alleged misuse of authority in public sector financial dealings.
