A landmark ruling reopens a long-running legal battle over alleged medicine overcharging, rejecting time-bar arguments and forcing senior hospital directors back before court.
The Maligakanda Magistrate’s Court has ordered the directors of a leading private hospital in Colombo to be summoned for the reading of charges in a case concerning the alleged sale of medicines to an inpatient at prices exceeding the prescribed maximum retail price. Maligakanda Magistrate Janitha Roshani Perera issued the order after rejecting preliminary objections raised on behalf of the hospital and its directors.
The objections, presented by Attorney Jeewantha Jayathilake, argued that the case had been filed after the statutory limitation period had expired and that the Maligakanda Magistrate’s Court lacked jurisdiction to hear the matter. The Magistrate dismissed these submissions, ruling that the objections were without merit and ordering that charges be formally read against the directors.
The directors summoned include Ashoka Pathirage, Manjula Karunaratne, Sudarshan Ahangama, Harris Premaratne, Sivakumar Selliah, Haresh Kumar Kaimal, Ajith Karunaratne, Indian nationals Vishal Bali and Ankur Nand Thadani, along with a hospital employee, B.D. Sandathisaru. When the case was called, none of the directors appeared in court. Only a representative of the hospital and the employee were present.
The case against Asiri Hospital and its directors relates to allegations that medicines were sold to an inpatient at prices higher than the approved maximum retail price. Legal proceedings were ordered to recommence from the beginning following a ruling by former Maligakanda Chief Magistrate Lochani Abeywickrama Weerasinghe, who determined that an earlier order imposing a fine of Rs. 25,000 was flawed. That fine had been imposed on January 17, 2024, by Acting Magistrate Himali Ekanayake after an individual appeared as an authorized representative of the hospital and pleaded guilty.
The prosecution was initiated after a complaint made to the Ministry of Health by Sanath Kumara Atukorala of Nugegoda. Following the complaint, the Food and Drug Inspector of the National Medicines Regulatory Authority, Mahinda Sirikumara, filed the case, bringing 11 separate charges under the Medicines Regulatory Authority Act. The charges allege that between February 7 and 19, 2023, medicines supplied to inpatient Mantri Kumarihamy at the hospital’s Narahenpita facility were billed above the regulated price.
When preparations were made to read the charges, the defense again argued that the case was time-barred, stating that the Act requires cases to be filed within three months of the alleged offense, while this case was filed nine months later. Deputy Solicitor General Lakmini Girihagama countered that the case was not time-barred and urged the court to proceed.
Attorney Ranjith Heellage, appearing for the complainant, argued that the defendants could not now change their position after earlier attempting to conclude the case and invoked the principle of estoppel. After reviewing all submissions, the Magistrate rejected the preliminary objections and ordered the directors to be summoned, allowing the case to move forward.
