Cooperative Insurance Co. Ex-Chairman gets suspended Contempt of Court jail term

The Commercial High Court has sentenced Former Cooperative Insurance Company PLC Chairman Susil Shantha Weerasekera for five years imprisonment, suspended for eight years, for the offence of filing a false affidavit.

This was in relation to the Commercial High Court case bearing No.: CHC/37/2022/CO which had been instituted by him. The judgment was delivered on 5 May 2026.

In addition, the Court also ordered that a fine of Rs. 5,000 be paid within three months to Court, failing which another three months of imprisonment is to follow. At the pronouncement of the sentence, Court also intimated that, in the event the former Chairman is found guilty of any other offence in any other Court within the stipulated period, that the sentence imposed will come into effect forthwith.

On 23 March 2026, following the conclusion of a lengthy inquiry, High Court Judge Chamath Madanayake delivered verdict finding Weerasekera guilty of Contempt of Court and subsequently fixed the matter for sentencing.

Thereafter, after hearing parties, the matter was fixed for Order on the sentence. On 5 May 2026, the Commercial High Court, exercising its authority under Contempt of Court, handed the sentence, though submissions were made to mitigate the sentence and factors were placed before Court.

The Commercial High Court exercised its Contempt of Court jurisdiction, taking cognisance of the complaints lodged by the present Cooperative Insurance Company PLC Chairman A.A.J. Amarasinghe, and Directors A.B. Senadeera and M. Widanagamage and two former Directors D.L. Samarawickrama, and P.B. Jayarathne, in the said case instituted by Weerasekera.

Weerasekera had initially initiated this case as the petitioner against the company and also against Directors of Cooperative Insurance Company PLC alleging oppression and mismanagement. In support of this action, he had filed an affidavit sworn to that fact he is a shareholder of the company. 

The action which had been instituted under sections 224 and 225 of the Companies Act No. 7 of 2007 warrants the party to be shareholder of the respective company. Accordingly, interim reliefs had been originally obtained on the representations made ex parte by Weerasekera.

Thereafter, the respondents, majority of former and present Directors objected to the reliefs sought by former Chairman Weerasekera and also objected to the maintainability of his case on the basis that though he had represented to be a shareholder of Cooperative Insurance Company PLC, the documents such as the annual reports of company confirmed that Weerasekera was not in fact a shareholder.

It was also alleged that these annual reports had also been signed by none other than Weerasekera as the then Chairman.

Upholding the jurisdictional objection, Justice Priyantha Fernando (sitting then as a High Court Judge of the Commercial High Court at the time) held that the Petitioner’s case cannot continue, and proceeded to dismiss the action on the 30 of May 2023.

In this backdrop, Contempt of Court proceedings was preferred against Weerasekera on a charge of presenting a falsified affidavit to Court which constitutes an offence under Section 183B of the Civil Procedure Code.

The Commercial High Court, pursuant to the application of Contempt of Court being supported in March 2023 proceeded to issue Contempt of Court summons on the Accused which then proceeded into an extensive inquiry which resulted in the conviction of Weerasekera and the sentence.

In its order convicting the accused, the Court observed that Weerasekera had wilfully and intentionally lied to Court under oath.

The present Chairman A.A.J. Amarasinghe, and two former Directors D.L. Samarawickrama, and P.B. Jayarathne who preferred the Contempt of Court application were represented by Counsel Nishan Premathiratne, AAL with Sidath Gajanayaka, AAL instructed by Premier Legal Consultants.

Present Directors A.B. Senadeera and M. Widanagamage who preferred the Contempt of Court application were represented by Dr. Harsha Cabral, President’s Counsel with Nimashi Fernando, AAL instructed by Premier Legal Consultants.