TISL welcomes SC ruling on FR violations in medical procurement case

 Transparency International Sri Lanka (TISL) has welcomed the recent judgment of the Supreme Court (SC), which found former Health Minister Keheliya Rambukwella, the Health Ministry Secretary, the National Medicines Regulatory Authority (NMRA) Chairman and Chief Executive Officer, and Medical Supplies Division Director responsible for violating the Fundamental Rights of the people of Sri Lanka.

The Court determined that: 

• The granting of a Waiver of Registration (WOR) by the NMRA was wrongful, arbitrary, and capricious, carried out in contravention of statutory requirements 
• The procurement, conducted through a direct contract and/or unsolicited basis, was unlawful and null and void, and failed to comply with applicable procurement guidelines and legal standards 
• The relevant officials acted with full knowledge that the supplier was unregistered, that required documentation and quality assurances were not met, and that established procedures were being bypassed 
• No payments are to be made to Savorite Pharmaceuticals Ltd., in respect of the said 38 medical supplies

The Court ordered: 

• Payment of Rs. 75 million to the State by former Health Minister Keheliya Rambukwella
• Payment of Rs. 50 million to the State by the other responsible respondents 
• The Commission to Investigate Allegations of Bribery or Corruption (CIABOC) to take steps as per the Anti-Corruption Act, No. 09 of 2023 in relation to the conduct in question

The judgement was delivered by a three-judge bench comprising Chief Justice P. Padman Surasena, Justice Kumudini Wickremasinghe, and Justice Janak de Silva.

TISL filed this Fundamental Rights petition before the Supreme Court on 16 February 2023 in the public interest, naming 47 respondents. The case challenges a series of actions taken by the then Minister of Health, Cabinet of Ministers, the Health Ministry, and the NMRA to procure 38 types of medical supplies from an unregistered Indian private company, Savorite Pharmaceuticals Ltd., through an unsolicited proposal, bypassing established legal and regulatory safeguards.  

Upon granting leave to proceed on 6 April 2023, the SC issued interim orders suspending further imports under the impugned procurement and directing that any consignments already received be subject to strict testing prior to use.

Subsequent proceedings before Court revealed significant irregularities in the procurement process. Evidence demonstrated that the selected supplier was not registered with the NMRA, that required documentation and quality assurance processes were not followed, and that procurement was carried out in deviation from applicable legal and regulatory frameworks. The Court also noted the absence of any genuine emergency or shortage that would justify bypassing established procedures.  In its judgement delivered on 27 March, the SC’s ruling affirms that this process resulted in serious public harm and amounted to a violation of the right to equal protection of the law under Article 12(1) of the Constitution. 

This judgment builds on the recent precedent set by Sri Lanka’s apex court in upholding accountability and reinforces the principle that public officials are bound to act within the law and always in the interest of the people they are meant to serve. The Court underscored the arbitrary manner in which public power was exercised to the detriment of public funds and citizen welfare and reaffirmed its duty to hold officials to account where they fail to uphold their obligations to the people.

TISL said it remains committed to advancing transparency, accountability, and integrity in governance, and to ensuring that abuses of power, especially those that place citizens’ lives at risk, are exposed and addressed.

Senior Counsel Senany Dayaratne with Nishadi Wickramasinghe, Lasanthika Hettiarachchi, Janani Abeywickrema, and Maheshika Bandara appeared for the Petitioners.