Anuruddha Polgampola, who was recently appointed as the State Timber Corporation by President Maithripala Sirisena, has been arrested by the CID over a fraud.
President Sirisena cancelled Polgampola's appointment following a strong public outcry.
Police sources said Polgampola was absconding court over a fraud amounting to Rs. 8 million.
They also added that Polgampola was appointed the State Timber Corporation Chairman in spite of him absconding the law enforcement authorities.
Polgampola is the second Timber Corporation Chairman to be arrested over fraud within a matter of two weeks.
He replaced P. Dissanayake who was arrested by the Bribery Commission while accepting a bribe of Rs. 20 million.