He was taken into custody when he appeared before the Commission to Investigate Allegations of Bribery or Corruption to provide a statement.
Nanayakkara was summoned in connection with an investigation into alleged irregularities in the process of sending Sri Lankan workers to Israel for agricultural employment during the previous government.
Meanwhile, the Colombo Magistrate’s Court yesterday rejected a request made on behalf of Nanayakkara seeking bail in anticipation of his arrest by the Bribery Commission.