Former minister Johnston Fernando was released on bail by the Colombo Chief Magistrate’s Court on Friday evening, hours after his arrest by the Commission to Investigate Allegations of Bribery or Corruption over the purchase of chairs for the Mahinda Rajapaksa Auditorium in Polgolla.

Bail was granted by Chief Magistrate Asanga S. Bodaragama on two sureties of Rs. 2.5 million each, with an overseas travel ban imposed, the Daily Mirror and Hiru News reported. Ada Derana described the same terms as two personal bail bonds rather than sureties — a legally distinct arrangement that no outlet has clarified.

Bail was contested

Ada Derana is the only outlet to report what happened in court. CIABOC asked for both suspects to be remanded, telling the Magistrate its investigation was incomplete.

President’s Counsel Sampath Mendis and attorney-at-law Rathwatte, appearing for the suspects, said their clients had cooperated fully with the investigation and that there were insufficient grounds to remand them.

The Magistrate noted the suspects were accused of an offence under Section 70 of the Bribery Act, but ruled that sufficient grounds had not been presented to refuse bail under the Bail Act. The case was fixed for further hearing on 17 November 2026.

A second suspect and a named company

The arrest was not of Fernando alone. Hemantha Lalith de Silva, owner of Design Point (Pvt) Ltd, was arrested as a suspect in the same investigation and bailed on the same terms.

CIABOC alleges that chairs for the Polgolla auditorium were arranged to be purchased from Design Point (Pvt) Ltd rather than from the institution that had submitted the lowest compliant bid meeting the required standards, causing a loss of Rs. 7,973,114.50 to the Central Engineering Consultancy Bureau and conferring an undue benefit on an outside party.

Fernando was arrested at 9.25 a.m. and de Silva at 9.30 a.m., the Daily Mirror reported. The Commission said Fernando was arrested on charges of corruption and de Silva for aiding and abetting the alleged offence; NewsFirst reported Fernando was held on both counts.

The loss figure has firmed up over the day. Earlier filings put it at “approximately Rs. 7.9 million” to the government; the Commission’s own account attributes it specifically to the CECB, a state engineering body. Outlets also split on the venue’s name — NewsFirst and one Daily Mirror filing call it the Mahinda Rajapaksa Auditorium, while Ada Derana, Hiru and a second Daily Mirror filing call it the Theatre. This site follows its own archive precedent in using Auditorium.

Context

Fernando’s arrest came about half an hour after Namal Rajapaksa arrived at the same Commission in the unrelated Airbus inquiry. Rajapaksa was remanded until 18 September; Fernando was bailed. No outlet has suggested a link between the two cases.

The former Minister of Co-operatives and Internal Trade already faces a substantial caseload, including a CWE corruption trial ordered to resume in August and an illegal assets summons in May.

Not yet reported

No outlet has said when the Polgolla procurement took place, who authorised it, or whether Fernando held the relevant ministry at the time. CIABOC has not indicated whether further suspects are expected.

Sources