In 2018, he was accused of mishandling the funds during his tenure as sports minister from 2010 to 2015 and was arrested regarding the funds spent on imported cricket and other sports equipments. He didn't reveal the details of the cricketers supposedly involved and insisted that he will not disclose the details for the sake of the country with absolute responsibility. His comments drew widespread criticism and global media attention among the cricket fraternity. Former Sri Lankan cricketers
Mahela Jayawardene and
Kumar Sangakkara who were part of the World Cup final denied the allegations and claimed that the minister was seeking for
publicity stunt and political advantage ahead of the
upcoming parliamentary election. The
Ministry of Sports also launched an investigation to probe the allegations made by Mahindananda. Ex Sri Lanka cricket team captain
Arjuna Ranatunga also made a serious allegation that the
2011 Cricket World Cup Final match between India and Sri Lanka had been fixed. Both Aluthgamage and Ranatunga demanded a probe into the events at the final match. The
International Cricket Council stated that it will investigate him based on his match-fixing allegations under ICC anti-corruption unit. On 25 June 2020, however he claimed that his allegations were only suspicion and demanded for an independent investigation regarding the fixing claims. Although Sri Lankan Police conducted a probe, they later dropped it citing lack of evidence. Later
International Cricket Council rubbished the
match fixing claims made by Ranatunga and Aluthgamage. ==Criminal conviction==