Colombo, October 31, 2025 — Hussein Ahamed Bhaila, the former Chairman of the Sri Lanka State Trading (General) Corporation (STC), was arrested this morning by the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) for his alleged involvement in a case causing a massive financial loss to the state.
The Allegation: Rs. 99.6 Million Loss
The CIABOC took Mr. Bhaila into custody over allegations related to his tenure as STC Chairman from February to October 2015.
The core of the allegation is that the former Chairman was responsible for:
• Importing 50 temporary storage units (Cocoon) in 2015.
• Procuring these units without necessity and in violation of established procurement procedures.
• This action allegedly resulted in a loss of Rs. 99,679,799.70 (nearly Rs. 99.7 million) to the Corporation and simultaneously granted an undue financial benefit of the same value to an external party.
Court Proceedings and Bail
Mr. Bhaila was taken into custody after reporting to the CIABOC office to provide a statement regarding the procurement. He was subsequently produced before the Colombo Chief Magistrate’s Court today.
After considering the arguments presented by both the CIABOC officials and the legal counsel for the suspect, the Colombo Chief Magistrate’s Court ordered the release of the former STC Chairman on bail.
Brief Profile: Hussein Ahamed Bhaila
A veteran politician, Mr. Bhaila has previously served as a Member of Parliament from 2004 to 2010. During this period, he also held several deputy ministerial portfolios, including Deputy Minister of External Affairs (2007–2010).
The investigation into the alleged financial misappropriation remains ongoing, with the focus now shifting to gathering further evidence for the full legal proceedings.
