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Neurosurgeon, Hospital Admin and Civilian Arrested in Major Corruption Scandal at Sri Jayewardenepura Hospital

-By LeN Health Correspondent

(Lanka-e-News -17.June.2025, 11.30 PM)  In a case that has sent shockwaves through Sri Lanka’s medical establishment, three individuals – including a senior neurosurgeon at Sri Jayewardenepura General Hospital – have been arrested by anti-corruption investigators over an elaborate medical procurement and malpractice scheme that allegedly defrauded both patients and the state.

Among those arrested is Dr Maheshi Surasinghe Vijeratne, a consultant neurosurgeon of considerable repute; Kakulandala Liyanage Indika, an administrative officer at the same hospital; and Nimal Ranjith Muthukuda, a civilian resident of Kadawatha, reportedly affiliated with a private institution illicitly operated under the direction of Dr Surasinghe.

The trio was taken into custody on June 17, 2025, following an extensive inquiry by the Commission to Investigate Allegations of Bribery or Corruption (CIABOC). The arrests represent one of the most high-profile medical corruption cases to surface in recent memory in Sri Lanka, implicating not only unethical procurement practices but also direct profiteering from vulnerable patients in need of life-saving surgery.

The Mechanics of a Medical Betrayal

At the centre of the allegations is the manipulation of the procurement process for critical surgical equipment, particularly EVD (External Ventricular Drainage) devices and VP (Ventriculoperitoneal) shunts—tools essential in treating patients with severe neurological conditions.

According to the investigators, Dr Surasinghe – in alleged coordination with Mr Indika and Mr Muthukuda – bypassed the hospital’s official supply chain by directing patients and their families to obtain these devices through unauthorised private channels. These external suppliers, reportedly tied to the private institution linked to Dr Surasinghe, charged exorbitant prices for the equipment, often several multiples above market value.

Official hospital records reveal that an EVD unit, which had cost the hospital’s Medical Supplies Division approximately Rs. 17,500 in 2022, is currently available in the local market for around Rs. 46,500. However, under the informal and extralegal guidance of Dr Surasinghe, patients were coerced into purchasing the same item at inflated prices, ranging from Rs. 120,000 to Rs. 250,000.

The devices were allegedly obtained through a private medical entity not recognised or registered under the Ministry of Health. This institution, authorities believe, was either owned or controlled by Dr Surasinghe through proxies, thus creating a direct conflict of interest and a clear avenue for unlawful enrichment.

Patients as Prey

This was not an isolated incident. Investigators have, to date, identified approximately 300 patients who underwent neurosurgical operations involving equipment procured through these irregular channels. Statements have already been recorded from 77 victims, many of whom described being pressured into acquiring the overpriced equipment under the impression that hospital supplies were either unavailable or inferior.

One such victim, the family of a 43-year-old construction worker who underwent surgery in late 2023, told The Times:

“We were told that if we waited for the hospital to provide the equipment, our brother might not survive. They even gave us a number to call. The price was outrageous, but we didn’t have a choice. We pawned our land.”

The family later discovered, to their dismay, that the same EVD device could have been obtained through the hospital, free of charge, had standard procedures been followed.

Institutional Complicity and Manipulated Shortages

The scandal also raises questions about systemic weaknesses in hospital governance and procurement monitoring. Sources within the Sri Jayewardenepura Hospital suggest that the administrative officer, Mr Indika, played a key role in facilitating these illicit transactions by ensuring that internal requests for surgical items like EVDs and shunts were either delayed or omitted from annual supply estimates.

By artificially creating a sense of scarcity, the accused parties allegedly increased reliance on external procurement—a need that was promptly exploited through their clandestine private networks.

This manipulation not only defrauded patients but also compromised hospital inventory systems and eroded public trust in Sri Lanka’s already strained state healthcare services.

Criminal Charges and Ongoing Investigation

The three suspects were remanded in custody after initial questioning and are likely to face multiple charges under the Bribery Act and Public Property Act, including:

  • Engaging in unauthorised private medical practice while holding a public appointment;

  • Illegally profiting from the misappropriation of government medical supplies;

  • Directing patients toward unregulated procurement networks;

  • Dereliction of fiduciary duty and public trust.

A senior official from CIABOC told The Times:

“This is not just a case of overpricing or private practice. This is a betrayal of the Hippocratic oath and the public duty of care. These arrests are only the beginning.”

The Ministry of Health has since launched its own internal probe, and suspensions for the suspects are expected to be formally announced pending disciplinary proceedings.

A Rotten Thread in a Fraying System

The scandal comes amid broader concerns about the state of Sri Lanka’s public healthcare infrastructure, already grappling with post-pandemic stress, budget cuts due to IMF-backed fiscal tightening, and mounting allegations of mismanagement.

While the arrests mark a rare instance of accountability, health sector insiders say the rot runs deeper.

“There are many more such cases,” said one senior consultant, speaking on condition of anonymity. “Once people realise you can make a million rupees off a shunt that costs six thousand, the temptation is enormous—especially in a country where salaries haven’t kept up and oversight is lax.”

A Public Reckoning Ahead?

Public outrage is already simmering. Patient advocacy groups and trade unions have demanded a full audit of surgical procedures conducted at government hospitals over the past five years. The Sri Lanka Medical Council (SLMC) has called for an emergency ethics hearing, and is likely to push for permanent revocation of medical licences if the allegations are confirmed.

Meanwhile, opposition politicians have seized on the scandal to critique the government's failure to regulate the medical profession more effectively. A heated parliamentary debate is expected later this week, with some MPs calling for the Health Minister’s resignation.

A Bitter Pill for a Beleaguered Nation

In a nation still healing from the economic wounds of 2022, this case has added insult to injury. The IMF-backed reform programme has forced austerity in every sector—including health. Essential drug shortages, rising patient out-of-pocket costs, and reduced state subsidies have made Sri Lanka’s public hospitals a battleground of desperation.

That desperation, it now seems, became a lucrative opportunity for those entrusted with healing.

What Now?

As the investigation continues, the real test will be whether the authorities pursue this case with the rigour it demands—or whether it is quietly brushed under the carpet, like so many scandals before it.

For the hundreds of patients and families now left not only with medical debt but with emotional scars, justice cannot come fast enough.

If Sri Lanka is to rebuild trust in its health institutions, it must start with holding its medical elite to account. For now, a neurosurgeon who once wielded a scalpel in service of life may well find herself answering for the kind of surgical precision that drained the very lifeblood of public trust.

-By LeN Health Correspondent

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by     (2025-06-17 21:53:04)

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