He did so after its members from the UNP, who were the only ones present at the meeting, submitted an alternative report on the Central Bank bond issue.
Their report found fault with a previous report by the auditor general in the bond issue.
Handunnetti refused to accept the UNP report and walked out, telling the others to appoint a new chairman and submit the report to him.
All UNP members of COPE, except Ranjan Ramanayake and Rauff Hakeem, attended.
Several parties alleged yesterday that there were moves to submit two reports by COPE on the bond issue.