Adam Castillo, a security consultant and former president of the American Chamber of Commerce in Myanmar, was detained upon returning to the country on Thursday, the police source said.

He is being held in connection with a lawsuit filed by the current director of a business organization he previously headed, the source said, adding that he faces allegations of breach of trust related to property matters, which carry a potential prison sentence of up to 10 years under Myanmar law.

A court on Friday ordered Castillo remanded in custody for two weeks while investigations continue, the source said.

A second source confirmed the detention but provided no additional details.

The US State Department said it was aware of reports regarding the detention of a US citizen in Myanmar but declined to comment further, citing privacy considerations.

Castillo recently published a memoir documenting his experience working in Myanmar during and after the 2021 military coup, which toppled the elected government of Aung San Suu Kyi and triggered widespread unrest and civil conflict.

Myanmar has remained under military-dominated rule since the coup, despite a political transition process that international observers have described as tightly controlled and largely excluding opposition groups.

The case comes amid ongoing tensions between Myanmar’s military authorities and parts of the international business and diplomatic community that scaled back operations following the coup.

Suu Kyi, 80, had been serving a 27-year sentence on multiple charges including incitement, corruption, election fraud and violations of state secrets laws, which her supporters say were politically motivated following the military takeover. It remains unclear whether she will be permitted to serve the remainder of her sentence under house arrest, according to her legal representative.

The sentence reduction comes as President Min Aung Hlaing approved an amnesty for 4,335 prisoners, state media reported. The move coincides with Thingyan, during which pardons are commonly granted, alongside annual Independence Day clemency measures.

A government spokesperson did not immediately respond to requests for comment on the scope of the amnesty or Suu Kyi’s status. The announcement also included provisions commuting death sentences to life imprisonment, according to official statements.

Myanmar has been in political turmoil since Min Aung Hlaing led a military coup in 2021 that ousted Suu Kyi’s elected government, triggering widespread unrest and international condemnation. He was sworn in as president earlier this month following elections widely criticised by international observers as lacking credibility.

The latest reduction marks the third amnesty initiative in six months, reflecting a pattern of periodic clemency announcements by the military authorities amid ongoing domestic instability.