Former Sri Lankan minister charged with insurance fraud during economic crisis

12 November 2025 , 22:18

735     0

Former Sri Lankan minister charged with insurance fraud during economic crisis

Sri Lanka’s former tourism minister was arrested Wednesday over alleged insurance fraud at the start of the country’s unprecedented economic crisis. Sri Lanka’s GDP per capita stood at $4,515 in 2024.

Sri Lanka’s former tourism minister was arrested Wednesday over alleged insurance fraud at the start of the country’s unprecedented economic crisis.

He was briefly detained Wednesday before being released on 100,000 rupees ($333) cash bail, ahead of a hearing on January 16. Colombo’s chief magistrate, Asanga Bodaragama, imposed a travel ban.
Ranatunga has already been handed a two-year suspended prison sentence and was fined 25 million rupees for extorting money from a local businessman.

Sri Lanka suffered an economic meltdown in 2022, when it defaulted on its $46 billion external debt.

There is no official data on state corruption losses, but activists estimate it to be billions of dollars over several decades. Sri Lanka’s GDP per capita stood at $4,515 in 2024.
The new administration has introduced legislation empowering the independent Commission to Investigate Allegations of Bribery or Corruption to recover stolen assets, even without criminal convictions.

Elizabeth Baker

Technology & Business Editor