Ex-STC Chairman Hussein Bhaila arrested over Rs. 99 million corruption case

Former Chairman of the Sri Lanka State Trading (General) Corporation (STC), Hussein Ahamed Bhaila, was arrested this morning (October 31) by officers of the Commission to Investigate Allegations of Bribery or Corruption (CIABOC).

He was taken into custody around 8.30 a.m. after arriving at the CIABOC office to give a statement regarding the importation of 50 temporary storage units (known as “Cocoons”) to the Corporation in 2015. Investigations have revealed that the units were imported without necessity and in violation of procurement procedures.

According to CIABOC, this transaction caused a loss of Rs. 99,679,799.70 to the Corporation and the government, while granting an undue benefit of the same value to an external party.

Bhaila served as the Chairman of the STC from February to October 2015. He was also a Member of Parliament from 2004 to 2010 and held several deputy ministerial positions, including Advanced Technology & National Enterprise Development (2004–2005), Plan Implementation (2005–2007), and External Affairs (2007–2010).

The former STC Chairman is scheduled to be produced before the Colombo Chief Magistrate’s Court.

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UPDATE – 04:45:

Former Chairman of the Ceylon State Trading Corporation, Hussein Ahamed Bhaila, has been released on bail.

Colombo Chief Magistrate Asanga S. Bodaragama granted him bail with two sureties of Rs. 1 million each and a cash bail of Rs. 50,000.

The court also imposed a travel ban on the suspect, preventing him from leaving the country.

The case has been fixed for hearing on January 23, 2026.