Former Minister Ravi Karunanayake was arrested by Sri Lanka's anti-corruption body on allegations of irregularities in recruitment at the National Lotteries Board during his tenure as Finance Minister, but was subsequently granted bail by the Colombo court.

Former Finance Minister Ravi Karunanayake has been released on bail following his arrest by the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) on Monday. The Colombo court granted bail after considering submissions from investigators and the defendant's legal representatives, while also imposing an overseas travel restriction on the MP.

The investigation centers on allegations that during Karunanayake's tenure as Finance Minister from January 2015 to May 2017, he and then-National Lottery Board Chairperson Shamila Perera oversaw the recruitment of individuals to the board on a contract basis outside standard procedures. According to the Bribery Commission, three individuals were hired as coordinating officers and a management assistant under the guise of a special ministerial project, but provided no actual services while receiving salaries and allowances from board funds. This conduct is alleged to violate Section 70 of the Bribery Act.

Karunanayake appeared at the CIABOC office at approximately 8:15 a.m. in response to a summons. After several hours of questioning and providing a statement, he was formally taken into custody. According to investigators, the former minister had previously failed to report for four separate summonses before his arrest. The Bribery Commission also conducted a visit to his residence on Rajamalwatta Road two days prior, though he was not present at that time.

The case forms part of an ongoing investigation into the National Lotteries Board, with authorities characterizing the recruitment practices as falling outside approved procedures.