KP was appointed as the new leader of the Tamil Tigers when Vellupillai Prabhakaran was shot dead by the Sri Lankan armed forces, in May 2009, putting an end to 26 years of war on the island. For years KP was the Tigers' chief weapons procurement agent. He was aware of the Tamil Tigers' sources of funding.
KP's evidence of the LTTE receiving money from America's biggest swindler of its stock market have been collaborated by two letters now in the hands of the US intelligence.
The money of Raj Rajaratnam became the subject of litigation in Sri Lanka long before he was nabbed by the FBI. The state owned Sunday Observer of Colombo, pointed out when Raj Rajaratnam was arrested that the person involved in the case against the United National Party (UNP) stalwart and former Minister of Trade Ravi Karunanayaka of having sent one million US dollars to Karunanayaka was Raj Rajaratnam himself. In that case under Sri Lanka's Exchange Control Act Karunanayaka was prosecuted as an individual cannot receive foreign money without the sanction of the government.
Colombo High Court Judge Deepali Wijesundera enlarged Mr. Karunanayake on bail on the 10th of July this year after conducting inquiries. He was granted a cash bail of 100,000 Rupees and a personal bail of one million Rupees. The High Court also barred Ravi Karunanayake from leaving the country without its permission.