Former Mayor of Batticaloa Sivageetha Prabhakaran was remanded until 07 November by Batticaloa Magistrate M. Ganesharajah.
Three other suspects who were arrested in connection with the case have also been remanded.
They are accused of running a brothel in Batticaloa. They were arrested during a police raid yesterday.
Sivageetha Prabhakaran was the Mayor of the city from 2008 to 2013.