News
Drug procurement scam: Cabinet Office hands over documents to CID
Incriminating fresh statement from cancer drug supplier recorded
By Shamindra Ferdinando
The Cabinet Office has handed over the documents requested by the Criminal Investigation Department (CID) investigating the procurement of fake immunoglobulin by the Health Ministry.
Authoritative sources said that the two sets of documents had been handed over to the CID so far and a third set would be sent within the next few days. Sources said so when The Island sought clarification from the Cabinet Office regarding the directive issued by Maligakanda Magistrate Lochana Abeywickrema to the Cabinet Secretary in this regard.
The Magistrate issued the directive on Dec 28, 2023. However, the Cabinet Office had released some of the documents required by the CID, even before the Dec 28 directive.
The CID is likely to receive the third set of documents from the Cabinet Office before the case is called again on Jan 10, according to sources.
Cabinet Secretary W. M. D. J. Fernando was not available for comment both on Tuesday and Wednesday.
The CID has also recorded several statements from officers of the Cabinet Office.
Magistrate Abeywickrema issued the aforesaid directive after the Attorney General’s Department informed court of President Ranil Wickremesinghe’s response to the then Health Minister Keheliya Rambukwella making reference to a particular supplier of medicine submitted to the Cabinet. President Wickremesinghe has said that such a reference shouldn’t have been made. The Kandy district lawmaker served as the Health Minister from 16 Aug., 2021 to 23 Dec., 2023.
So far six persons, including former Ministry Secretary Janaka Sri Chandragupta also of the Sri Lanka Administrative Service, and the supplier of fake immunoglobulin. Hewage Sugath Janaka Fernando, the proprietor of Isolez Biotech Pharma, situated at Seeduwa, has been remanded till Jan 10 pending investigations. Fernando is the first suspect in the high profile case.
The other suspects on remand are the Director of the Medical Supplies Division (MSD) Kapila Wickramanayake, Accountant (Supplies) Niran Dananjaya, Assistant Director, M.S.D. Shanthi Solomon and Stores Manager Sujith Kumara.
Following submissions made by the Attorney-at-Law Jaliya Samarasinghe, the Counsel for the first suspect, Magistrate Abeywickrema directed that a fresh statement be recorded from him. Lawyer Samarasinghe has alleged that the CID declined to record his client’s statement that implicated the then Health Minister Rambukwella.
Samarasinghe yesterday (03) told The Island that CID had recorded his client’s statement the day after the Magistrate issued the new directive. The first suspect has alleged that he acted in accordance with the instructions received from Minister Rambukwella and the then Chief Executive Officer of National Medicines Regulatory Authority (NMRA) Dr. Vijith Gunasekera.
Samarasinghe emphasised that his client wouldn’t accompany the CID to inspect the Isolez Biotech Pharma plant as requested by the police. The CID couldn’t expect the suspect to cooperate with them after they forcibly entered the premises previously, Samarasinghe said.
Former Bar Association President Kalinga Indatissa, PC, who initially appeared for the first suspect, declared in the Maligakanda MC that the mastermind of the immunoglobulin scam was among the Cabinet-of-Ministers. Subsequently, Samarasinghe took over the case.
Counsel Samarasinghe also raised in the Maligakanda court the issue of CID recording Minister Rambukwella’s statement at his residence contrary to the procedure followed in respect of other suspects. Magistrate Abeywickrama asked the CID to follow a common approach when obtaining statements.
It has transpired that in October 2022, a month after Parliament defeated the no-confidence motion moved against Minister Rambukwella, the Health Ministry’s three-member Health Sector Emergency Procurement Committee (HSEPC), chaired by Chandraguptha, awarded the full tender for 22,500 phials of immunoglobulin to the first suspect. The total value of the contract was US$ 2,925,000 (over Rs. 960 mn). In addition, the first suspect’s company has received other orders, according to available records.
News
National Audit Office reveals NHSL lapses
Reagent scandal:
Deputy Director of the National Hospital, Dr. Rukshan Bellana, has been interdicted by Health Service Committee (HSC) of the Public Service Commission (PSC) following a preliminary inquiry into several complaints received against him, government sources said.
They said certain matters referred by the Secretary to the Prime Minister Dr. Harini Amarasuriya and Inspector General of Police (IGP) Priyantha Weerasooriya, too, had been taken into consideration.
A Health Ministry official said there was no truth in Dr. Bellana’s claim, as reported in the 30th December edition of The Island, that the Health Ministry had sacked him on the approval of the HSC of the PSC over him taking up the massive Rs 900 mn fraud involving the supply of chemical reagents to the laboratory of the National Hospital of Sri Lanka (NHSL) in Colombo, which is the premier hospital in the country.
Sources said that there was absolutely no basis for this allegation. The official said that Dr. Bellana had been interdicted for issuing statements that caused controversy and turmoil among the public. That’s the most serious offence that had been taken into consideration when the decision to interdict him was taken, sources said. “There will be a spate of charges in the charge sheet to be issued soon.”
The interdiction of medical officers could not be carried out by the Ministry of Health and Mass Media, as the Ministry was not vested with disciplinary authority, sources added.
Dr. Bellana said he stood by what he revealed and had evidence to support his claim.
Health Ministry sources acknowledged that the National Audit Office (NAO) on June 6, 2025, had called for information in respect of chemical reagents procured by the National Hospital Colombo NHSL laboratory from 2022 to 2024.
Responding to another query, sources said that a separate investigation by the Internal Audit of the Ministry of Health was on into issues raised by the Audit query pertaining to the lab of the NHSL.
Having pointed out that the government paid Rs. 894,186,168 (2022), Rs. 713,652,615 (2023) and Rs. 936,152,767, totalling Rs 2,543,991,550 for chemical reagents during that period, NAO sought an explanation from the Health Ministry as to how Rs 12,894,697 worth of chemical reagents past expiry dates were found in six laboratories at NHSL during examination carried out on April 7,8,10,21 and 22 in 2025.
The NAO also raised the failure on the part of the relevant authorities to secure the approval of the Medical Supplies Division (MSD) before placing orders with local suppliers for chemical reagents.
The Health Ministry was questioned over the absence of proper stock keeping regarding Rs 2544 mn worth chemical reagents issued to NHSL laboratories. The NAO ascertained that Financial Regulations 751 had been violated. As a result of the absence of credible stock keeping, the NAO hadn’t been able to ascertain whether shelf-life expired chemical reagents were misused, the government authority stated.
The NAO asked for an explanation regarding the payment of Rs 912,838 over the required amount to a local private supplier (NAO named the supplier) for chemical reagents obtained.
In one of the most serious observations, NAO pointed out that shelf-life expired chemical reagents had been used for tests. The NAO raised this while pointing out the Health Ministry violated a key prerequisite in the procurement of chemical reagents that their shelf life should be at least 85% at the time of receiving consignments. Instead, all stocks procured had less than six months shelf life, NAO stated.
NAO declared that some suppliers refrained from mentioning the date of manufacture and the time of expiry.
The above mentioned were some of the issues that had been raised by Audit Superintendent Y.M. Sugathadasa on behalf of the Auditor General who is the head of the NAO. The post of AG remains vacant since December 8, 2025. Earlier incumbent W.P.C. Wickremeratne retired on April 8, 2025 after having served as AG for several years. President Anura Kumara Dissanayake and the Constitutional Council haven’t been able to reach consensus on a permanent appointment yet.
By Shamindra Ferdinando ✍️
News
NPP’s CMC budget passed after four Opp. members switch allegiance
The Opposition has claimed that the government forced three of its Colombo Municipal Council members to to skip yesterday’s vote on the annual budget of the Council. The three councillors who voted with the SJB-led Opposition on 22 Dec., to defeat the NPP, skipped yesterday’s vote.
Two of them didn’t turn up yesterday while the other one left the Council early, claiming his wife was not well. One of the four SLMC councillors switched his allegiance to the NPP. having voted with the Opposition on 22 Dec.
As a result, the CMC’s annual budget was passed with a majority of two votes.
The budget proposal received 58 votes in favour, while 56 councillors voted against it. Last week, the Opposition obtained 60 votes to defeat it, while the NPP managed to secure only 57.
When the 2026 budget of CMC was first presented to the council on 22 December, 60 councilors voted against it while 57 members voted for the budget.
In the last Local Government Elections, the NPP secured power in the CMC and its mayoral candidate Vraie Cally Balthazar was elected as the Mayor of Colombo by securing 61 votes. (SF)
News
600MW hit to national grid as two Norochcholai units go offline
Sri Lanka’s power system has suffered a major setback with two of the three generators at the coal-fired power plant at Norochcholai going out of service, cutting around 600 megawatts from the national grid, even as Energy Ministry officials stressed yesterday that the issue is minor and fully under control.
One unit has been offline since November for scheduled major maintenance carried out once every three years, while another was shut down following a technical fault in its boiler. As a result, only one generator, at the country’s largest and only coal-fired power station, is currently supplying electricity to the grid.
Despite the sharp reduction in coal-based generation, a senior spokesperson for the Norochcholai Power Plant assured that there would be no disruption to electricity supply, as hydroelectric power generation is being increased to compensate for the temporary shortfall from Norochcholai.
Ministry of Power and Energy officials also confirmed that the situation is not serious and does not pose a risk to the stability of the national grid. “This is a minor technical issue and routine maintenance activity. There is no cause for public concern,” a senior Ministry official said.
Meanwhile, a top official of the Ceylon Electricity Board (CEB) said all three units of the Norochcholai Power Plant are expected to be restored by the first week of January, delivering the full 900MW capacity back to the national grid.
“Current reservoir levels are favourable, allowing us to rely more on hydropower during this period,” the CEB official said, adding that system operations are being closely monitored.
A senior electrical engineer told The Island that one unit had been shut down in November for routine maintenance, while another unit suffered an unexpected breakdown earlier this week. “Such incidents are not unusual in large thermal power stations. Corrective work is already under way and the units will be brought back online as scheduled,” he said.
Norochcholai remains the backbone of Sri Lanka’s base-load electricity generation, and while prolonged outages could place strain on the system during dry periods, officials reiterated that current conditions and contingency measures are adequate to ensure uninterrupted power supply until full operations resume.
By Ifham Nizam ✍️
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