Sri Lankan lawmaker Namal Rajapaksa faces a new investigation regarding an alleged 70 million rupee bribe from the Indian-backed Krish Hotels project. The probe, occurring while he is in custody, highlights regulatory and governance risks surrounding foreign investment projects in the region.
Sri Lankan opposition politician Namal Rajapaksa was questioned by the Commission to Investigate Bribery or Corruption at the Colombo remand prison this Saturday. The investigation centers on allegations that Rajapaksa received 70 million Sri Lankan Rupees from the local representative of Krish Hotels, an investment venture with Indian backing. This new inquiry adds another layer of legal pressure on the 40-year-old parliamentarian, who has been in custody since early September facing separate investigations into money laundering and the 2013 acquisition of Airbus aircraft for the national carrier, SriLankan Airlines.
The focus on Krish Hotels is part of a broader probe into the project's regulatory approvals. Authorities have also remanded the chairperson of the hotel group, Janaki Siriwardena, until October 6. Investigators allege that illicit payments were made to fast-track approvals for the hotel project, raising questions for investors about the transparency and administrative procedures associated with such large-scale developments. This case is not the first time the Krish project has drawn scrutiny; in 2016, authorities filed charges alleging that funds intended for the project were misused to promote rugby activities.
For investors and market observers, the situation highlights the regulatory and governance risks that can impact international projects in the region. The current Sri Lankan administration has framed these legal actions as part of a 2024 campaign promise to address systemic corruption in public office. Conversely, the Sri Lanka Podujana Peramuna (SLPP) party has described the ongoing proceedings as a targeted campaign of political victimisation. With Rajapaksa denied bail and remaining in custody, the legal process is expected to continue.
The primary monitorables for the market and observers will be the progress of the investigations into both the politician and the hotel management. Additionally, stakeholders in Indian-backed projects in Sri Lanka will be tracking how these developments affect the operational status and approval timelines of existing and future ventures.