The police spokesman said that he was arrested in connection with charges related misuse of state property.
He is accused misusing state-owned vehicle while serving as the Chairman of the Development Lotteries Board.
Gunawardena had reportedly continued to serve in the tender board of the DLB even after being elected to parliament and being appointed as a deputy minister.
He had allegedly imported a luxury vehicle, valued at over Rs 8 million, during this time while the whereabouts of the said vehicle is still unknown.
He has been produced before the Colombo Fort Magistrate’s Court.
In July, the former Deputy Minister pleaded guilty to charges for failure to declare assets during the two years he served as the Chairman of the National Lotteries Board, from 2005-07.
He was fined Rs 2,000 by the Colombo magistrate’s Court and subsequently released.
UPDATE: (3.12pm) - Former deputy minister Sarana Gunawardena has been ordered remanded until September 18 after being produced at the Colombo Fort Magistrate’s Court.
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