Sri Lanka’s anti-corruption authorities move to the High Court, accusing two powerful figures of engineering costly fuel purchases that allegedly drained hundreds of millions from public funds.
The Commission to Investigate Allegations of Bribery or Corruption has filed indictments before the Colombo High Court against former minister Arjuna Ranatunga and his brother Dhammika Ranatunga, alleging that their actions caused a loss of nearly Rs. 800 million to the Ceylon Petroleum Corporation.
The Commission informed the Colombo Chief Magistrate’s Court of the development on Thursday, January 22, when the case was taken up before Chief Magistrate Asanga S. Bodaragama. Officials of the Bribery Commission stated that indictments had been filed under the Anti-Corruption Act against Arjuna Ranatunga, who served as Petroleum Resources Development Minister, and Dhammika Ranatunga, the former Chairman of the CPC.
According to the prosecution, the core allegation is that the accused cancelled three long-term fuel tenders that were intended to secure petroleum supplies for a six-month period during 2017 and 2018. Instead, fuel was allegedly purchased through 27 spot tenders at significantly higher prices. The Commission claims this decision resulted in an estimated loss of nearly Rs. 800 million to the state-owned petroleum entity, amounting to aiding and abetting financial loss to public funds.
The investigation was initiated following a complaint submitted to the Bribery Commission’s investigation committee by Upali Abeyratne of the Sri Lanka Free Employees Union of the Ceylon Petroleum Corporation. Investigators allege that the tender cancellations and subsequent spot purchases were carried out despite internal objections and contrary professional advice.
Dhammika Ranatunga was arrested by the Bribery Commission on December 15, 2025, and produced before the Colombo Magistrate’s Court on the same day. Chief Magistrate Bodaragama ordered his release on two surety bonds of Rs. 1 million each, while cautioning him against influencing witnesses. The court also imposed a foreign travel ban and ordered the surrender of both Sri Lankan and United States passports, noting that the suspect is a dual citizen.
The Bribery Commission informed court that Arjuna Ranatunga would also be arrested and produced as a suspect. However, Assistant Legal Director Anusha Sambagaperuma said that Ranatunga was abroad at the time and would be taken into custody upon his return.
During proceedings, the Assistant Legal Director outlined that on July 27, 2017, the CPC had prepared Cabinet papers proposing fuel purchases from China Petro Company under three long-term tenders. She told court that objections were raised, claiming such purchases were risky, leading to the cancellation of the tenders. A committee appointed thereafter reportedly failed to reach a decision, and investigators allege that pressure was exerted on committee members to alter their stance. Statements from those committee members have since been recorded.
The prosecution also noted that both the Cabinet and the President at the time later expressed that long-term fuel procurement was the appropriate approach. However, due to the expiry of bidding periods, fuel had to be sourced through multiple local tenders to prevent shortages, allegedly resulting in the massive financial loss.
President’s Counsel Saliya Peiris, appearing for the suspect, strongly opposed further remand. He argued that investigations were complete and revealed that a Fundamental Rights petition had been filed in the Supreme Court challenging the travel ban, which has been granted leave to proceed. He maintained that the ban was imposed unlawfully and that his client fully cooperated with investigators.
After considering submissions from both sides, the Magistrate ordered the suspect to remain on bail and fixed the next hearing for March 13.
SOURCE :- BBC SINHALA
