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SriLankan Airlines Corruption Scandal: Ex-CEO Admits Kickbacks to Former President Rajapaksa

The global aviation industry is often fraught with complex dealings, but recent revelations from Sri Lanka have brought to light a significant corruption scandal involving the nation’s former president and its state-owned airline. In a stunning admission, the former chief of SriLankan Airlines, Kapila Chandrasena, has confessed to paying nearly half a million dollars in kickbacks to ex-President Mahinda Rajapaksa to secure the approval for a multi-billion dollar deal to purchase 10 Airbus planes. This unfolding saga, heard at the Colombo Chief Magistrate’s Court, casts a long shadow over past political administrations and corporate governance in the island nation.

According to representatives for Sri Lanka’s bribery commission, Chandrasena admitted to funnelling 60 million rupees (approximately $461,000 at the time) to Rajapaksa in three separate instalments during 2013. These alleged payments coincided with SriLankan Airlines’ pursuit of a colossal $2.3 billion agreement with Airbus, a deal that critically required the rubber stamp of Rajapaksa’s cabinet. Chandrasena’s confession reportedly came in a statement to the commission following his arrest, adding a dramatic twist to an already contentious investigation.

Mahinda Rajapaksa, who governed Sri Lanka from 2005 to 2015, and his influential family have long been at the centre of numerous high-profile corruption allegations. While they vehemently deny these accusations, branding them as politically motivated, Chandrasena’s admission provides a concrete detail that investigators have been seeking. A spokesman for Rajapaksa, Manoj Gamage, was quick to dismiss the claims, stating, “You cannot rely on a statement from the main accused. This is a political vendetta, and we will resist it.” However, the former airline chief’s sworn statement in court lends considerable weight to the prosecution’s case.

The scandal’s scope extends beyond the direct kickbacks to the former president. Chandrasena himself faces accusations of conspiring to accept a staggering $16 million from Airbus, though he purportedly received only about $1.7 million of that sum. The court heard that these funds were routed through a Singapore bank account, from which not only Rajapaksa was allegedly paid, but also the then-aviation minister Priyankara Jayaratne, who reportedly received 20 million rupees (around $154,000). Neither Chandrasena, currently in custody, nor Jayaratne has publicly commented on the latest developments.

This case is not an isolated incident. SriLankan Airlines, burdened by estimated accumulated losses of 596 billion rupees by March last year, has repeatedly failed to attract a buyer amidst its financial woes. The airline’s troubled history intersects with broader international investigations into Airbus’s business practices. In 2020, a joint probe by the US, Britain, and France named Chandrasena in connection with Airbus business deals, leading to a massive $4 billion fine approved by a French court for the European aircraft manufacturer. British investigators explicitly accused Airbus of failing to prevent bribery to “obtain or retain business or advantage” with SriLankan Airlines.

Furthermore, the Rajapaksa family’s entanglement in corruption allegations continues. In June 2025, Nishantha Wickramasinghe, Rajapaksa’s brother-in-law and chairman of SriLankan Airlines when the controversial aircraft deal was struck in 2013, was arrested in an unrelated corruption case. He was accused of financing Rajapaksa’s unsuccessful re-election campaign, a case that remains pending.

As this complex web of alleged corruption unravels in the Colombo Chief Magistrate’s Court, the implications for Sri Lanka’s political landscape and state-owned enterprises are profound. The ongoing legal battles underscore a persistent challenge in ensuring transparency and accountability in high-level government and corporate dealings. For more global news and critical insights, stay tuned to DubaiBusTiming, your source for timely updates.

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