Former Lanka Mineral Sands Chairman Arrested Over Rs. 34.4 Million in Alleged Irregular Salary Payments

The former Chairman of Lanka Mineral Sands Limited (LMSL), Udeni Jayaratne Dassanayake, has been arrested by the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) in connection with irregular salary payments totalling Rs. 34.4 million, authorities confirmed.

Nature of the Allegations

Investigators allege that Dassanayake was responsible for authorising or facilitating salary disbursements amounting to Rs. 34.4 million in a manner deemed unlawful and improper. The payments are believed to have been made during his tenure as Chairman of the state-owned enterprise, which operates under the purview of Sri Lanka's mineral resources sector.

CIABOC Steps In

The anti-corruption commission moved to take Dassanayake into custody following its investigation into the financial irregularities at the state institution. CIABOC has been increasingly active in pursuing accountability within state-owned enterprises, and this arrest signals continued scrutiny of how public funds are managed at the highest levels of government-affiliated bodies.

Lanka Mineral Sands Under the Spotlight

Lanka Mineral Sands Limited is a government-owned company responsible for the mining and processing of mineral sands in Sri Lanka. As a state entity, its financial operations are subject to strict regulatory oversight, making the alleged misappropriation of salary funds a matter of significant public concern.

The arrest underscores growing pressure on Sri Lankan authorities to ensure transparency and accountability within state-owned enterprises, particularly amid the country's broader economic recovery efforts.

It is expected that Dassanayake will be produced before a magistrate as legal proceedings get underway. Further details regarding the charges are anticipated to emerge as the case progresses through the judicial system.

This development is likely to draw renewed attention to governance standards within Sri Lanka's state sector, where calls for stricter financial oversight have grown louder in recent years.