On behalf of the Doctors’ Trade Union Alliance for Medical and Civil Rights, Dr. Chamal Sanjeewa, yesterday (31), lodged a complaint with the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) alleging the government’s failure to recover compensation owed to Sri Lanka in connection with the X-Press Pearl disaster.

Dr. Sanjeewa told the media that the Supreme Court, in a judgment delivered in 2025 by a five-member bench, headed by the then Chief Justice Murdu Fernando, had determined that the X-Press Pearl disaster resulted in a violation of fundamental rights and ordered that US$1 billion be paid to the government of Sri Lanka.

But, so far, only USD I million had been received, Dr. Sanjeewa said. The civil society activist said that his alliance had called for a comprehensive investigation into the reasons for the failure to recover the funds under the present administration.

Over USD 1 bn illegal transfers

Colombo Chief Magistrate Asanga S Bodaragama has directed the police Financial Crimes Investigations Division (FCID) to respond to Court on the written application under 124 CCPA made to the Chief Magistrate on behalf of first suspect Jiffry Mohamed of AY Investments Impex Pvt Ltd, that FCID be directed to investigate directly or through the banks and ascertain from the overseas exporters by fax or email the relevant exports made by them to Sri Lanka in respect of the advance payments received by them from the banks in Sri Lanka.

The suspect has also submitted to Court through his Counsel that he believes that the goods were in fact exported to Sri Lanka by the overseas exporters in China and India to Sri Lanka and cleared by the respective importers from time to time and that it is vital for the police to investigate what happened to the monies that were sent by the several banks overseas.

Suspect’s Counsel M.M. Zuhair PC told the Court that no Sri Lankan importer would send huge amounts to overseas exporters without receiving the goods for which he had made advance payments through banks!

The suspect and his 34 associate companies, he said, are not the importers. That A Y Investments performed a limited operational service for a nominal commission. They receive funds in rupees from brokers for transferring the said sums in rupees to the banks and that the banks after exercising due diligence convert the rupees into foreign currencies and remit the foreign currencies to the overseas exporters.

FCID has not reported to Court on the rest of the 89 companies other than suspect’s 34 companies, he submitted.

Counsel submitted that advance payments are lawful under the ‘Special Import license and Payment Regulations No 1 of 2011 issued by then President of Sri Lanka under the Import and Export (Control) Act and Article 44 of the Constitution issued 15 years ago. Regulations were amended by the incumbent President in June 2026 and that the 2011 regulations as amended are in force.

He said police have not referred to these regulations, which permit advance payment for imports, in their several reports to Court.

As the suspect is in remand, he is unable to himself assist the police and that he had while in custody provided assistance whatever possible to the investigators but he could do better if he is enlarged on bail, he has said in the written application for bail. Counsel pleaded that the suspect has no previous convictions or police involvement and he be released on bail with whatever strict conditions the Court may impose.

In the written application, the suspect has submitted that he is entitled to a ‘just, fair and complete investigation’ by the police, in the case where police allege that huge amounts of monies had been sent to overseas exporters by 89 Sri Lankan companies for imports but that no imports, police allege, had been received.

Counsel appearing for the four bank employees arrested and in remand said that they were junior employees and had not committed any offence and sought bail. Court made an order remanding the suspects until September 3rd.

MP Ravi Karunanayake, who was arrested by the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) yesterday (31), was released on bail after being produced before the Colombo Additional Magistrate.

Karunanayake was arrested after making statement in connection with an investigation into allegations involving three employees recruited for a special project of the National Lotteries Board.

The investigation was launched over allegations that the three employees had been deployed for political activities, resulting in a loss to the state.

The court ordered Karunanayake’s release on bail and imposed a travel ban on him.