Mr. Ranasinghe is accused of swindling nearly 9000 million rupees

Two children, aged eight and ten years, of Sakvithi Veerakumara Ranasinghe, were produced at the Gangodawila magistrate by the police Criminal Investigation Department (CID).

The police said no one claimed the guardianship of the children since their parents, who are accused of swindling billions of rupees in an investment scam, were arrested on Friday.

He is yet to be charged and it is not known whether Mr Ranasinghe denies the allegations.

'High returns'

Sakvithi Ranasinghe, a popular English tuition teacher and a proprietor of an illegal fiancial institution is accused of swindling nearly 9000 million rupees.

Sri Lanka police have earlier sought Interpol help to arrest the suspect.

Thousands of people deposited large sums into his construction company, including sports personalities, senior policemen and military personnel.

Police say they were offered high returns - through the company's pyramid form of investment - which were not forthcoming.

They say that Mr Ranasinghe used a photo of himself with President Mahinda Rajapaksa in newspaper advertisements to attract investors.

The police were ordered to hand over the children to National Child Probation Authority (NCPA) until 17 August.

The two suspects are also ordered to be produced before the court on 17 August.