Once again, the corrupt Airbus deal has surfaced in local media. This time, it is after the Criminal Investigation Department (CID) of Sri Lanka Police questioned former President Mahinda Rajapaksa’s legislator son, Namal Rajapaksa, over receiving commission from the Airbus deal when his father was in power.
The latest allegation is different. Junior Rajapaksa was questioned for over four hours on a statement given by a State witness.
The witness, a well-known close ally of Rajapaksa and businessman, said that he facilitated the transfer of cash from the Airbus deal and handed it over to Namal Rajapaksa, according to police sources.
Namal Rajapaksa has denied the allegations, saying, “It seems anybody who has got unexplained wealth can get away by claiming that they have the Rajapaksas’ money. While these state witnesses enjoy life, the Rajapaksas have to face police questioning.”
International and local investigations have clearly pointed towards the involvement of bribes and misappropriations in the 2013 Airbus deal.
Kapila Chandrasena
Namal Rajapaksa
Former SriLankan Airlines Chief Executive Kapila Chandrasena and his wife, Priyanka Wijenaike, were remanded in February 2020 after a British court found that Airbus had paid $2 million to a shell company, Biz Solutions Inc., set up in Brunei in 2012. The money was transferred to a Singapore account of the company, investigators have said.
Chandrasena served as the Chief Executive of SriLankan Airlines from July 2011 to February 2015, during former President Mahinda Rajapaksa’s second term.
British court documents in 2020 revealed that the wife of a SriLankan executive had acted as an agent for the procurement of Airbus aircraft, and Airbus had offered a bribe of $16 million.
Chandrasena’s arrest order followed revelations in documents filed in a UK court about payments made to his wife’s company by Airbus in a 2013 sales contract.
Airbus agreed to pay around 3.5 billion euros in fines to the Governments of France, the UK, and the US in a settlement following a joint investigation for alleged bribery in sales.
The Sri Lankan Government under Rajapaksa’s successor, Maithripala Sirisena, investigated the deal, but nobody was held accountable until his tenure ended in 2019.
Until the British court found evidence of bribery and misappropriation, Sri Lankan authorities could not arrest anyone in connection with the deal.
Dragged probe
The protracted delay in investigating the SriLankan Airlines-Airbus corruption scandal, despite substantial evidence of misconduct, underscores significant challenges within Sri Lanka’s legal and political systems.
This case, involving alleged bribery and financial irregularities in aircraft procurement, highlights systemic issues that impede justice and accountability in Sri Lanka.
Taxpayers continue to suffer due to the Airbus deal. The Government has been funding the loss-making airline because of past debts, including payments for the overpriced Airbus aircraft.
In 2013, SriLankan Airlines entered into agreements to purchase six Airbus A330-300 and four A350-900 aircraft, alongside leasing an additional four A350-900s.
Subsequent investigations revealed that Airbus had engaged in corrupt practices to secure these contracts.
Airbus allegedly offered up to $16.84 million in bribes to a company registered in Brunei, owned by Priyanka Niyomali Wijenaike, the wife of then-CEO of SriLankan Airlines, Kapila Chandrasena.
Of this amount, $2 million was reportedly transferred to the company’s account in Singapore in December 2013.
The scandal came to international attention in January 2020 when Airbus settled corruption probes with authorities in the United States, United Kingdom, and France, agreeing to pay over $3.9 billion in fines.
This settlement included admissions of bribery by Airbus in several countries, including Sri Lanka.
In response, Sri Lankan authorities initiated investigations, leading to the arrest of Kapila Chandrasena and his wife in February 2020 on charges of money laundering related to the Airbus deal.
Despite these arrests, progress in the legal proceedings has been minimal.
After their initial detention, both Chandrasena and his wife were released on bail in March 2020. Since then, there has been a conspicuous absence of substantive developments in the case.
This stagnation raises critical questions about the efficacy of Sri Lanka’s judicial processes and the potential influence of political and institutional factors in high-profile corruption cases.
Deep-rooted corruption
Successive Governments have failed to address the continuous losses in SriLankan Airlines.
Though the previous Government insisted on privatising the state-owned enterprise, it did not proceed due to strong protests by trade unions.
President Anura Kumara Dissanayake allocated Rs. 20 billion in the 2025 Budget for the loss-making carrier, but Deputy Finance Minister Harshana Suriyapperuma said that the money was not for recurrent expenditure.
He said that SriLankan Airlines has been making a monthly payment of $ 900,000 for three grounded aircraft for many years.
“This institution is not only involved in corrupt practices locally but also internationally. There is still a legal case in an international court regarding commissions received when purchasing aircraft,” Suriyapperuma told Parliament.
Sri Lanka’s political landscape is often characterised by intricate networks of patronage and influence. Individuals implicated in high-level corruption cases frequently have connections to powerful political figures, which can lead to interference in legal proceedings.
Such interference may manifest as pressure on investigative bodies, manipulation of legal processes, or deliberate stalling of cases to protect affiliates.
The questioning of Namal Rajapaksa last week on the deal is significant, indicating that the current Government aims to proceed with the stalled case.
When the British court documents revealed Chandrasena’s involvement, then-President Gotabaya Rajapaksa ordered a full inquiry into allegations that a former SriLankan Airlines executive’s wife received the $2 million payment. However, there was no progress due to the Covid-19 pandemic and the subsequent economic crisis.
The U.S. State Department has already imposed travel sanctions on Chandrasena and his family over the Airbus deal.
Compensation?
In March 2021, SriLankan Airlines sued Airbus for $1 billion in damages, loss of reputation, reimbursement of costs, and interest.
The national carrier also demanded the cancellation of the A350-900 Purchase Agreement for four A350-900 aircraft, seeking the return of the $19 million advance payment made for those aircraft.
However, progress on this legal case remains undisclosed.
The new Government must provide updates on the case and actively pursue compensation, as the country has a strong chance of receiving financial redress.
Addressing corruption, especially when it involves influential individuals, necessitates a robust political commitment to uphold the rule of law.
The absence of decisive action and the failure to prioritise such cases suggest a lack of genuine political will to combat corruption effectively.
The delay in the Airbus deal probe highlights how Sri Lanka’s legal and investigative institutions struggle with resource constraints, bureaucratic inertia, and a lack of specialised expertise to handle complex financial crimes.
The Government has an opportunity to turn its words into action. The U.S. State Department’s sanction on Kapila Chandrasena underscores the global implications of domestic corruption and the potential for international entities to intervene when local mechanisms fail.
Bringing justice in the Airbus corruption scandal will be a litmus test for President Dissanayake’s Government.
Successfully prosecuting those involved and securing compensation from Airbus would enhance the Government’s credibility and demonstrate a commitment to fighting corruption in Sri Lanka.
