Sri Lanka's anti-corruption authority has arrested former First Lady Shiranthi Rajapaksa on charges of misusing donation funds raised for a children's hospital.

The 73-year-old Shiranthi was arrested on Wednesday (October 7) at her residence in Colombo.

Shiranthi Rajapaksa is the wife of former President Mahinda Rajapaksa. Approximately 10 million Sri Lankan rupees (about US$30,300) had been raised through the 'Siriliya Saviya' charity—an organization linked to the couple—to purchase a specialized scanner for the Lady Ridgeway Hospital for Children in Colombo.

However, anti-corruption officials claim that the Chinese government had already donated a similar scanner to the hospital. Consequently, an investigation was launched into how the donated funds were utilized.

Shiranthi Rajapaksa has denied the allegations, maintaining that the donation money was neither embezzled nor diverted. She returned to Sri Lanka on Monday after undergoing medical treatment in Singapore. She had previously petitioned the court to prevent her arrest; a hearing for that petition is scheduled for October 12.

Manoj Gamage, a spokesperson for former President Mahinda Rajapaksa, stated that the funds in question remain secure in the 'Siriliya Saviya' bank account and that no fraud has taken place.

Mahinda Rajapaksa served as the President of Sri Lanka from 2005 to 2015. His family wielded immense influence over the country's politics for a long period. During his first term, the defeat of Tamil Tiger rebels in 2009 marked the end of a nearly three-decade-long civil war, earning him popularity among a segment of the population.

However, widespread protests erupted across the country in 2022 amidst a severe economic crisis. Inflation soared, and acute shortages of fuel, food, and medicine emerged. At that time, Mahinda's brother, Gotabaya Rajapaksa, was the President; he was ultimately forced to step down in the face of massive public agitation. Since the government of current President Anura Kumara Dissanayake assumed office, long-standing corruption investigations involving various members of the Rajapaksa family have been reactivated.

Namal Rajapaksa—the eldest son of Mahinda and Shiranthi—was also arrested earlier this year over allegations related to an aircraft purchase deal made while his father was president; he is currently in remand. Another of their sons, Yoshitha Rajapaksa, was also arrested earlier this year on corruption charges.