The Immunoglobulin Scandal in Sri Lanka: How Procurement Corruption Undermined Public Health
Updated on 20th April 2026
In 2023, following the 2022 Aragalaya movement, anti-corruption sentiments in the country were high, and there was hope that the movement would have acted as a deterrent against the culture of corruption that had plagued the country for decades. It was in this context that one of the most atrocious instances of corruption in recent years was uncovered – one that not just misappropriated millions of rupees of public money at a time when the government was absolutely broke, but also directly created life risks for the most sick and vulnerable. This was the Immunoglobulin scandal, in which former Minister of Health Keheliya Rambukwella and several officials were implicated.
Immunoglobulin is a plasma-derived medication containing antibodies used to treat immune deficiencies, autoimmune disorders, and certain neurological conditions. Because it is derived from human blood plasma for use in critical care settings, its production, storage, and distribution are strictly regulated all over the world. Any compromise in its quality can directly endanger patients’ lives, making procurement standards especially stringent.
The issue first surfaced in 2023, when patients who were administered immunoglobulin reported unexpected adverse reactions, raising suspicions. These reactions prompted hospitals and specialists to flag the issue to health authorities. Concerns arose as to whether the drug was authentic or properly manufactured.
Laboratory testing of the suspect batches revealed serious irregularities. The product did not meet expected pharmacological standards and appeared inconsistent with certified immunoglobulin formulations. In fact, it was reported that labs found that there were no ‘detectable levels’ of immunoglobulin in some of the consignments, and only saline and bacteria was detected.
While cases of tenders awarded illegally are not new, critical to this case is that the documentation accompanying the drug was found to be unreliable. The Indian companies that are said to have manufactured and marketed the drug in fact were found to have had no involvement with this consignment of the drug, though their names had been used accompanying the product. Investigations later determined that some certification documents had been falsified, allowing the drug to bypass standard regulatory checks. The signature and letterhead of a senior official of the National Medicines Research Authority (NMRA) had allegedly been forged in the process.
Isolez Biotech, the Sri Lankan company responsible for the drug, is said to have imported the raw materials for it using frauduent customs codes. The owner of the company. Sudath Janaka Fernando is one of the accuseds arrested in this case.
In ordinary circumstances, it is only a drug or medical device that has been registered with the NMRA that can be brought into the country. An exception to this is the granting of a ‘waiver of registration’ (WOR) which can only be done in special circumstances, such as to save a life, prevent an outbreak or a national emergency, or in the interest of national security. It is this system that appears to have been used on the front of drug shortages due to the economic crisis, though even while bypassing the ordinary procurement process with this waiver, documents have been forged and approvals illegally granted. Where NMRA Board approval would normally be required, officials had gone directly to the Ministry of Health, without the relevant supporting documents. Reports from court proceedings suggest that the owner of Isolez Biotech has suggested that this was a scam masterminded by then high-up’s in the Ministry of Health.
Based on these forged documents, a contract for the supply of 22,500 vials of the medicine, at the cost of nearly US $3 million was awarded to Isolze Biotech, and an advance of more than SLR 36 million had been paid to the company before the irregularities with the medicine were detected.
When news of the scam first broke in 2023, there was outrage among the public. This was at a time when public funds were dwindling and putting at risk the lives of vulnerable citizens. Despite this serious nature of the case, the government only removed former Minister Rambukwella from his post as Minister of Health but he continued to be a member of the Cabinet. In September 2023 the main opposition party, the SJB brought a no-confidence motion against him, but the motion was defeated with with 113 MP’s voting to defeat the motion, and only 74 voting in its support. The defeat of the no-confidence motion is an indicator of the disparity between public outrage and the actions of lawmakers.
The Attorney General filed indictments against Rambukwella, Sudath Janka Fernando and several officials. This case is proceeding before a Trial at Bar in Colombo, where the accused were granted bail in September 2025. Parallelly, the Commission to Investigate Allegations of Bribery and Corruption (CIABOC) also took legal action against several, including Rambukwella and several members of his family, for money laundering. Additionally, in a Fundamental Rights Application filed by Transparency International Sri Lanka, the Supreme Court found that Rambukwella and others including the former secretary to the Ministry of Health, the former Chairman and CEO of the NMRA and the former Director of the Medical Supplies Division had violated fundamental rights by the importation of medicines without following proper tender procedures, and by granting waivers of registrations. Rambukwella was directed to pay a sum of SLR 75 million to the State, and the others found responsible ordered to pay SLR 50 million each.
While impunity has been a common theme in many of the emblematic cases that have rocked Sri Lanka over the years, this case provides some hope that justice may be achieved.
References
https://www.themorning.lk/articles/7vhhXfTwgSmhAA2oq34I
https://supremecourt.lk/wp-content/uploads/judgements/sc_fr_65_2023_with_sc_fr_82_2023.pdf