In the context of a reported $2.5 million fraud involving the computer system of the Department of External Resources of the Ministry of Finance, social media posts have circulated alleging that the Road Development Authority erroneously repaid Rs. 380 million to contractors. An inquiry has been initiated to verify the accuracy of these claims.
Social Media Posts:
A statement attributed to Samagi Jana Balawegaya MP Nalin Bandara has circulated on social media, alleging that the Road Development Authority erroneously disbursed Rs. 380 million from its main account to contractors who had previously received payments.
“When advance payments were made from the RDA’s main account, cheques were processed through the District Chief Engineer, Executive Engineer, and Project Engineer. Following the change of government, an online payment system was introduced from the Road Development Authority headquarters. Subsequently, the same amounts previously disbursed to contractors in 2023 were erroneously reissued to the same parties. Notices are now being issued to recover the funds.”
Social media posts circulated alleging that Rs. 380 million had been overpaid to contractors through the Road Development Authority.
FB Post 1 | FB Post 2 | FB Post 3 | FB Post 4 | FB Post 5
We have initiated an inquiry into the matter in response to requests to verify the facts and determine whether any inaccuracies exist.
Explainer:
MP Nalin Bandara
Mainstream media outlets also reported the statement made by Mr. Nalin Bandara. In response, we sought clarification from him as to whether he possessed any records or evidence indicating that the Road Development Authority had disbursed Rs. 380 million to contractors on which the statement was based.
He forwarded a letter circulating on social media, purportedly indicating that the Bank of Ceylon had requested repayment from the aforementioned contractors, as requested. He further asserted that this constituted evidence supporting his statement.
Analysis of the relevant report
This letter, issued by the Bank of Ceylon (BOC) to the Road Development Authority, requests assistance in recovering Rs. 51,053,326.59, which was erroneously credited to a group of contractors due to a system error.
A fund transfer (SLIPS file) effected on 30 December 2024 was erroneously duplicated on 23 January 2026 due to a banking system error. The letter further states that Rs. 263,529,072.11 was mistakenly credited, of which the bank has already recovered the majority, with a balance of Rs. 51,053,326.59 remaining to be recovered.
The letter specifies both the outstanding amount yet to be recovered and the contracting agency from which the remaining sum of Rs. 51,053,326.59 is to be recovered.
It is further noted in this letter that the Bank of Ceylon expects the intervention and coordination of the Road Development Authority to recover this money from the relevant institutions.
However, the letter issued by the Bank of Ceylon clearly indicates that the funds were credited from an internal account of the Bank itself, rather than from any account of the Road Development Authority.
This letter formally confirms that the error did not originate from the accounting division of the Road Development Authority but resulted from a malfunction within the Bank of Ceylon’s internal system.
Accordingly, the letter further establishes that the claims made by the MP that the Road Development Authority repaid amounts to contractors from its official account are unfounded or false.
Deputy Minister of Transport and Highways
Deputy Minister of Transport and Highways, Dr. Prasanna Gunasena, states that the Road Development Authority categorically rejects the false claim made by Samagi Jana Balawegaya MP Nalin Bandara that contractors were paid twice, and affirms that no such payments have been made in respect of the relevant projects from the Head Office main account or any subsidiary account.
Similarly, Dr. Prasanna Gunasena stated that the Road Development Authority has not issued any correspondence to the bank, nor has the bank communicated any such matter to the Authority. He further noted that no issue exists between the Authority and the contractors, and that any dispute between the contractors and the bank does not fall within the responsibility of the Road Development Authority.
The Minister further emphasizes that the Road Development Authority has not effected any double payments, and that the Chief Accountant has confirmed the funds were deposited only once. These payments relate to several contractors in the Batticaloa region, and their validity has been verified by the relevant Provincial Director of the Road Development Authority.
Deputy Director General of the Road Development Authority
Explaining the method of payment to contractors by the Road Development Authority, Thushara Vidyarathna, Deputy Director General (Corporate Finance) of the RDA, stated that funds received from the Treasury through the Ministry are not paid twice under the current technical method. He clarified that the Authority’s Head Office does not make direct payments to contractors; instead, all disbursements are processed through regional offices following established procedures. Payments are executed via the respective directors, engineers, and accountants of those offices, meaning local payments are not routed through Head Office accounts. He further pointed out that these payments are processed through the Accountant General of the Eastern Province, making duplicate payments both practically and technically impossible. He asserted that MP Nalin Bandara’s statement is entirely false.
The statement issued by the Director General of the Road Development Authority providing clarification on this matter is available here.
The Road Development Authority has issued a media statement further confirming this position.
The Bank of Ceylon has not issued any statement on this matter, and our attempts to obtain clarification from them were unsuccessful. Should a response be received, this report will be updated accordingly.
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Title: Explained: Viral Claim of Rs. 380 Million Double Payment by Road Development Authority
Fact Check By: Pavithra Sandamali
Result: Insight
