A dramatic courtroom saga unfolded in Colombo as Asiri Hospital directors, including Chairman Ashok Pathirage, were released on bail following charges of overpricing essential medicines. The case, fueled by allegations of patient exploitation and legal missteps, has become a national flashpoint on accountability in Sri Lanka’s private healthcare sector.
On September 26, the Maligakanda Magistrate’s Court ordered the release of several high-profile directors of Asiri Hospital, including Chairman Ashok Pathirage, after they finally appeared in court following arrest warrants that had been issued for their failure to attend a crucial hearing. The directors were accused of supplying medicines to a resident patient at prices far above the maximum retail rate, sparking outrage and legal action against one of the country’s most prominent private hospital groups.
Acting Magistrate Sharmila Sahabdeen released the directors Ashok Pathirage, Manjula Karunaratne, Sudarshana Ahangama, Harris Premaratne, Sivakumar Sellaya, Harsha Kumar Kaimal, and Ajith Karunaratne — on personal bail of Rs. 500,000 each. The warrants previously issued against them were also withdrawn following their court appearance.
The Charges and Allegations
The case originated after a complaint was filed by Sanath Kumara Athukorala, a resident of Nugegoda, with the Ministry of Health. Acting on his complaint, the Food and Drug Inspector of the National Medicines Regulatory Authority lodged charges against the directors of Asiri Hospital.
The allegations centered on events between February 7 and 19, 2023, when a patient named Samarakoon Mudiyanselage, MP Kumarihamy, was admitted to the hospital’s Narahenpita branch for treatment. It was claimed that she was billed at prices substantially higher than the maximum retail price set by the government for prescribed medicines.
The prosecution accused the hospital of violating price control laws under 11 separate charges, suggesting systematic overpricing rather than a clerical oversight. According to the complaint, even common medicines such as paracetamol and aspirin were billed at more than 300 percent above their actual price.
Initial Legal Maneuvers
When the case was first called in the Maligakanda Magistrate’s Court, notices were issued requiring the directors to appear on January 23. However, instead of complying, the hospital company authorized an officer named Kelum Jayasuriya to appear through a motion before Acting Magistrate Himali Ekanayake. Jayasuriya pleaded guilty to one of the charges and was fined Rs. 25,000, with a default sentence of six months imprisonment if the fine went unpaid.
This development temporarily closed the case, but it was soon challenged by plaintiff Athukorala, who argued that the order issued by the Acting Magistrate was faulty and did not adequately address the seriousness of the allegations.
Case Reopened
Chief Magistrate Lochani Abeywickrama Weerasinghe later reviewed the matter and agreed with the plaintiff. After a detailed examination, she ruled that the earlier order had been issued in error, reopening the case and issuing new notices to the Asiri Hospital directors to appear before the court.
The hospital directors then attempted to shield themselves from trial by filing a revision petition before the Colombo High Court. However, High Court Judge Manjula Thilakaratne dismissed their request for an interim injunction that would have suspended proceedings at the Magistrate’s Court. With the High Court declining to intervene, the case returned to Maligakanda on September 25.
Failure to Appear and Arrest Warrants
Despite repeated summons, the directors failed to appear before the Magistrate’s Court on September 25. Their defense counsel, Attorney Jeewantha Jayathilake, argued that his clients had expected the High Court to rule in their favor and had therefore not presented themselves. He requested additional time, claiming that some directors were foreign nationals and could be produced quickly if necessary.
Deputy Solicitor General Lakmini Girihagama, representing the National Medicines Regulatory Authority, strongly opposed the request, stressing that no one should be allowed to place themselves above the law. She pointed out that the defendants had already ignored several summons and had shown disregard for court proceedings.
Supporting this position, Attorney Ranjith Hillage, representing the complainant Sanath Kumara Athukorala, told the court that the hospital had engaged in exploitative practices, charging patients exorbitant amounts for even the most basic medicines. “My client is not pursuing this for profit,” Hillage explained. “He is fighting to secure justice, not just for himself but for the entire country. These directors must learn to respect the authority of the court.”
After considering the submissions, the Magistrate issued warrants for the arrest of the hospital directors.
Released on Bail
On September 26, the directors appeared before the Maligakanda Magistrate’s Court and were released on personal bail. The court also withdrew the arrest warrants, clearing the immediate legal hurdle for the directors but leaving the charges intact.
The case has since become a symbol of the wider debate on healthcare accountability in Sri Lanka. Private hospitals, which dominate urban healthcare services, have long been accused of excessive billing practices and a lack of transparency in their operations. The Asiri case, given its high-profile defendants and detailed accusations, has brought these issues to the forefront.
Broader Implications
The controversy highlights the challenges faced by regulators in enforcing price controls on essential medicines. The National Medicines Regulatory Authority has the responsibility to ensure affordability and accessibility, but lapses in oversight have allowed some institutions to allegedly inflate costs, placing enormous financial pressure on patients.
The case also underscores a key tension between private profit-driven healthcare and public health priorities. As Sri Lanka struggles with economic instability and rising living costs, the public expects fairness and accountability from healthcare providers. The charges against Asiri Hospital’s directors, if proven, could establish a precedent for stricter enforcement of laws governing pricing and patient rights.
For now, the directors remain on bail, with the case pending further hearings. The outcome will not only determine their legal fate but could also reshape the regulatory landscape of Sri Lanka’s private healthcare sector.
