The Commission to Investigate Allegations of Bribery or Corruption (CIABOC) has arrested former Chief Executive Officer (CEO) of SriLankan Airlines, Kapila Chandrasena, in connection with long-standing investigations into alleged corruption surrounding the national carrier’s Airbus aircraft procurement deal from 2012-2013.
Chandrasena appeared before the Bribery Commission earlier today to record a statement regarding the controversial transaction. Following a lengthy questioning session, he was taken into custody for allegedly accepting a bribe of USD 2 million linked to the Airbus deal.
The case stems from SriLankan Airlines’ agreement to purchase ten Airbus aircraft, six A330s and four A350s—during Chandrasena’s tenure as CEO . Investigations, including those prompted by Airbus’s global corruption settlement in 2020 with authorities in the UK, US, and France, revealed that Airbus allegedly agreed to pay bribes totaling around USD 16.84 million in connection with the sale. Of this amount, USD 2 million was reportedly credited to an account tied to a Brunei-based company owned by Chandrasena’s wife, Priyanka Neomali Wijenayake . The funds were allegedly transferred through intermediaries, including to a Singapore bank account.
The scandal first gained international attention through Airbus’s €3.6 billion settlement, which included admissions of corrupt practices in several countries, including Sri Lanka. Sri Lankan probes, initially led by the Criminal Investigations Department (CID) and later involving CIABOC, have focused on bribery, money laundering, and procurement irregularities that reportedly caused massive financial losses to the airline—estimated in some reports at up to USD 400 million due to overpricing, penalties for cancellations, and related issues.
Chandrasena and his wife faced earlier arrests in February 2020 on money laundering charges related to the same deal, following court orders and revelations from UK court documents. They were remanded at the time but later released on bail. The case has dragged on for years, with additional developments including U.S. sanctions imposed on Chandrasena and his immediate family members in December 2024 for his alleged role in accepting bribes to ensure the purchase of Airbus aircraft at above-market values.
Today’s arrest by CIABOC marks a renewed push in the bribery-specific investigation, separate from or building on prior money laundering proceedings. Sources indicate the statement recording and subsequent arrest followed fresh scrutiny of the evidence.
The Airbus deal has been a major embarrassment for SriLankan Airlines, contributing to its ongoing financial struggles. Past statements from government officials have highlighted how the procurement led to significant losses, including penalties for canceling A350 orders and overpayments for certain aircraft.
No further details on remand status, charges filed, or next court appearance were immediately available. The case continues to draw attention amid broader efforts to address corruption in public institutions.
This development underscores persistent calls for accountability in high-value state procurements and the long-term impact of alleged corruption on Sri Lanka’s national carrier. Updates are expected as the investigation progresses.
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