Sri Lankan court seeks more evidence before warrants for Indian company directors

A Sri Lankan court has refused to issue arrest warrants for two Indian directors wanted in an alleged bribery case involving the stalled Krish Hotels investment project. The Colombo Chief Magistrate declined the request for warrants for Amit Katyal and Rajendra Prasad Gupta, directors of the Indian company involved in the project. The court cited a lack of evidence and directed the Commission to Investigate Allegations of Bribery or Corruption to file a report supporting its application.

The case also involves opposition leader Namal Rajapaksa and Janaki Siriwardena, the local agent for the Indian investment project. Both are being held in remand as suspects. Rajapaksa, the 40-year-old elder son of former President Mahinda Rajapaksa, has been accused of accepting 70 million Sri Lankan rupees in 2013 in connection with the hotel project.

The project did not proceed. According to the anti-corruption commission, Siriwardena allegedly paid Rajapaksa on several occasions to secure approvals. Prosecutors have alleged that Rajapaksa used his political influence during his father’s presidency to accelerate the approvals required for the development.

Rajapaksa has denied that the money was a bribe. He has said it was sponsorship for an international rugby event held in Colombo in 2014. The opposition leader was remanded in the case on September 29 until October 13.

He had already been in custody since September 4 in connection with a separate alleged $2 million bribery case, and another remand order has been issued against him in a separate money-laundering case. The court’s refusal to issue warrants does not resolve the allegations against the two directors. The anti-corruption commission must now provide the additional material requested before the warrant application can be considered further.