Sunanda Deshapriya who headed the media section of the Centre for Policy Alternatives (CPA) has resigned following an internal investigation into a controversial financial transaction.

Well informed sources told The Sunday Island that Dr. Paikiasothy Saravanamuttu, Executive Director, CPA had accepted Deshapriya’s resignation.

A vociferous activist in the sphere of media rights and a former convenor of the ‘Free Media Movement’ (FMM), Deshapriya had been investigated for what the sources called a transaction that lacked clarity.

At the time of his resignation, he had been Director of the Media Unit of the CPA.

The sources said that Deshapriya had settled the total outstanding payments to the CPA. Responding to our queries, they said that other media activists may have been involved in the scam and CPA was expected to investigate further.

The sources said that an investigation was launched after the detection of a recent misappropriation of CPA funds.

They alleged that Deshapriya and two of his associates had obtained funds received from overseas donors to strengthen a campaign to protect journalists under threat from the government.