Rehabilitation Minister Gunaratne Weerakoon had told a political gathering that US Ambassador to Sri Lanka, Michele J Sison had offered him inducements to pursue a covert US political agenda in Sri Lanka.
"My two children were offered US scholarships, green cards and a house to live in America," Weerakoon had alleged.
"The allegations by Minister Gunaratne Weerakoon are baseless. They reflect a fundamental misunderstanding of our engagement with senior government officials and our policy towards Sri Lanka as well as the US political and economic system," a statement by the US embassy here said.
He said the international community led by the US was conspiring against Rajapaksa, a constant refrain of the president's supporters as he seeks to win a record third term.
Rajapaksa's ministers have said the entry of Maithripala Sirisena as the opposition unity candidate to face the Sri Lankan president was the brainchild of foreign embassies based in Colombo.