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Sri Lanka’s former First Lady Shiranthi Rajapaksa

Colombo: Sri Lanka’s former First Lady Shiranthi Rajapaksa has been remanded until October 13 after being arrested over alleged financial irregularities involving her charity.

Rajapaksa was arrested on Wednesday by the Commission to Investigate Allegations of Bribery or Corruption (CIABOC).

She was questioned for nearly two hours at her residence in Colombo before being taken into custody.

Rs10 million under investigation

The case involves Rs10 million transferred from the National Savings Bank to the Siriliya Saviya organisation.

According to investigators, the money was obtained to provide a CT scanner for Lady Ridgeway Hospital for Children.

The Bribery Commission alleges that the scanner was not provided using the funds and that the money was misused.

The investigation also covers other financial transactions involving the organisation, which was headed by Rajapaksa.

CIABOC told court that Rs8.8 million from the Foreign Affairs Ministry and Rs22 million from Huawei had also been deposited into the organisation’s account. Investigators are also looking into the purchase of a house in the Torrington area.

Defence rejects allegations

Rajapaksa’s lawyers denied that the Rs10 million had been misused.

Her defence told court that the money remains in the Siriliya Saviya bank account.

The lawyers said the organisation had planned to raise around Rs160 million for the CT scanner but had collected only about Rs42 million by 2014. They said the account was later frozen after a complaint was made.

Former National Savings Bank chairman Pradeep Kariyawasam was also arrested in connection with the case. He was released on bail, with the court imposing a foreign travel ban.

Rajapaksa is the wife of former President Mahinda Rajapaksa. She returned to Sri Lanka earlier this week after travelling overseas for medical treatment and had been due to appear before the Financial Crimes Investigation Division on October 13.