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Decisive Authority Over Drug Procurement Under the Indian Credit Line Vested in Saman Rathnayake!

Defense Counsel Issues Firm Demand Before Cross-Examining Investigating Officers

The Trial-at-Bar concerning the alleged fraudulent supply of counterfeit human immunoglobulin and rituximab vials to the state healthcare system—a scam that purportedly defrauded the Sri Lankan government of LKR 144.4 million—took another decisive turn yesterday. Heard before a three-judge bench of the Colombo Permanent High Court, comprising Presiding Judge Priyantha Liyanage, Judge Viraj Weerasuriya, and Judge Thilakarathne Bandara, the prosecution presented a series of critical testimonies detailing the financial procedures and chain of command involved in the procurement of these drugs.

The Indian Credit Line and Saman Rathnayake’s Role

The 289th witness for the prosecution, Mrs. Thilaka Jayasundara, current Secretary to the Ministry of Industries, took the stand. Led by Deputy Solicitor General (DSG) Lakmini Girihagama, her testimony meticulously detailed the operations of the Main Committee established under the Indian Credit Line.

Deputy Solicitor General: "Did you serve as a member of a main committee operating under the Indian Credit Line? Who chaired the main committee?"

Witness: "It was chaired by the Secretary to the Ministry of Trade. The Secretary to the Ministry of Industries and an Additional Secretary to the Ministry of Health served on it, along with a representative from the Ministry of Finance. There were three sub-committees for essential food items, goods, and materials including pharmaceuticals."

At this juncture, the prosecution proceeded to establish before the Court the direct involvement of the 10th accused, Dr. Saman Rathnayake, the former Additional Secretary to the Ministry of Health.

Deputy Solicitor General: "Who participated representing the Ministry of Health?"
Witness: "Mr. Saman Rathnayake, who served as an Additional Secretary to the Ministry of Health, served on that committee."
Deputy Solicitor General: "Please look, is he present anywhere in this Court?"

(The witness stood up from the witness box and identified Dr. Saman Rathnayake among the accused in open court).

Meeting Minutes and Digital Signatures

The DSG presented a series of sub-committee reports and meeting minutes, dating from April 2022 to January 2024, to the witness. Mrs. Jayasundara confirmed that the Main Committee approved all these reports before forwarding them to the Ministry of Finance, explicitly noting that Dr. Saman Rathnayake’s signature was present on each document.

Deputy Solicitor General: "Look at the minute dated April 6, 2021. Was Dr. Rathnayake present? Is Dr. Rathnayake's signature on it?"

Witness: "Yes, My Lord, Dr. Rathnayake was present. Yes, My Lord, his signature is here."

Testifying on a minute dated July 4, 2022, she stated, “Dr. Rathnayake has given his approval for this via email; his digital signature is indicated there.” Consequently, the prosecution demonstrated to the High Court that Dr. Saman Rathnayake had granted full approval for these Indian Credit Line drug procurement invoices, participating in committee meetings either physically or via Zoom.

During the cross-examination by Counsel Ravi Hansa Wijesinghe, representing the 10th accused, it was pointed out that the witness’s signature was missing on a report dated August 5, 2022. Responding to this, she clarified that the relevant minute had received approval and that she had reviewed the record previously.

Permission to Amend the Witness List

Following this testimony, the DSG petitioned the Court to summon the original documents submitted to the Indian Credit Line sub-committee by the Chairman and the General Manager of the State Pharmaceuticals Corporation (SPC). As the individuals initially named as witnesses are no longer employed there, the three-judge bench granted the prosecution permission to amend the witness list to summon the current General Manager or an authorized representative to present the records.

A Firm Demand from the Defense Before Summoning CID Officers

The bench announced that the trial would resume on the 28th, on which date the testimonies of the investigating officers from the Criminal Investigation Department (CID) are scheduled to be recorded.
At this juncture, Defense Counsel Nayantha Jayasundara, representing the eighth accused (Keheliya Rambukwella), raised a critical legal argument advocating for a fair trial and the protection of the defense’s rights.

He strongly emphasized to the Court that in order to cross-examine the investigating officers effectively, it is absolutely essential for the defense to peruse the witness testimonies recorded thus far. Therefore, he formally requested the Court to facilitate the provision of these recorded testimonies to the defense and to grant adequate time for review and preparation.

Reinforcing this stance, Counsel Asela Serasinghe, representing the second accused (Dr. Kapila Wickramanayake), informed the Court that it would be extremely difficult to cross-examine these investigating officers without obtaining the relevant records. He also brought to the Court’s attention that certain records previously requested by the defense had not yet been received.

Acknowledging this reasonable and logical legal request by the defense counsels, the Presiding Judge assured them that a suitable directive would be provided.

Background and Future Proceedings

The case has been filed against 12 individuals—including the owner of Isolez Biotech Pharma, Janaka Fernando; former Health Secretary Janaka Sri Chandraguptha; former Minister Keheliya Rambukwella; Dr. Saman Rathnayake; Dr. Kapila Wickramanayake; and Dr. Vijith Gunasekera—under 13 indictments, including the criminal misappropriation of LKR 144.4 million, conspiracy, and aiding and abetting.

Over 350 witnesses—including former President Ranil Wickremesinghe, and former Ministers Nimal Siripala de Silva, Wijeyadasa Rajapakshe, and Douglas Devananda—along with nearly 300 exhibits, have been named in connection with this trial. The next hearing is scheduled for the 28th.

Source Court Report – The Leader

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