Ex-Lanka Sathosa finance chief, two others arrested over Rs. 17 Million garlic deal loss

A former Deputy General Manager (Finance) of Lanka Sathosa Limited and two businessmen were arrested on February 12, 2026 over a Rs. 17,006,600 loss caused to the company through the sale of garlic at below-approved prices.

The arrests were made by officers of the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) in connection with an ongoing investigation.

The former Deputy General Manager (Finance) was taken into custody at around 9:00 AM, while the two businessmen were arrested at about 9:14 AM.

According to information received by the Commission, the suspects are accused of causing a financial loss of Rs. 17,006,600 to Lanka Sathosa Limited.

The loss is said to have occurred after 54,860 kilograms of garlic were sold to a private party at Rs. 135 per kilogram.

The sale was allegedly carried out contrary to Cabinet approval and against the existing rules and regulations of Lanka Sathosa Limited.

Investigators state that the transaction was made with the knowledge and intent that the institution would incur a loss, and with the objective of providing an advantage to a private businessman.

The suspects were later produced before the Colombo Chief Magistrate’s Court, where they were released on bail.