AGM of Water Board arrested over Rs. 12.75 Million vehicle rental fraud

Two persons, including Dharshana Medawatte, an Additional General Manager of the National Water Supply and Drainage Board (NWSDB), have been arrested by the Commission to Investigate Allegations of Bribery or Corruption (CIABOC).

It is reported that, although two government vehicles had already been assigned for the use of the Chairman of the NWSDB, the suspects obtained a Toyota Prado SUV on a rental basis using funds from the Kandy North Pathadumbara Integrated Water Supply Project, which is implemented by the Board.

Furthermore, without verifying the actual purpose for which the vehicle was used, a sum of approximately Rs. 12,750,000 was paid as rental fees to an institution named G.N. Auto Holding.

Investigations have also revealed that the suspects bypassed procurement procedures and took steps to award the contract to that company in order to obtain the vehicle.

It is stated that the suspects did not properly take delivery of the vehicle and, by making the payment, provided an undue advantage to the supplier.

Accordingly, the suspects have been arrested on charges of corruption and conspiracy to commit corruption, as well as for causing a loss to the State by arranging payment to the company.

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UPDATE – 06:50 PM:

An Additional General Manager of the National Water Supply and Drainage Board (NWSDB), Dharshana Medawatte, and another individual who were arrested by the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) on bribery charges have been remanded until February 20, 2026.

The order was issued by Colombo Chief Magistrate Asanga S. Bodaragama after considering submissions made by CIABOC officials and the suspects’ lawyers.

CIABOC officials informed the court that the Additional General Manager is still serving at the Water Board and that statements are scheduled to be recorded from six of his subordinates.

CIABOC requested that the suspects be remanded to prevent any potential influence on witnesses if they were released on bail.

Representing the Additional General Manager, President’s Counsel Nalinda Indatissa argued that the suspect has completed over 32 years of service at the institution and is due to retire soon. He also noted that no complaints have been made alleging that the suspect influenced witnesses during the ongoing investigation, and requested bail for him.

After reviewing the submissions, the Chief Magistrate ordered that the suspects remain in remand custody until February 20, 2026.