SriLankan Airlines Bribery Case Implicates Ex-President Rajapaksa

Sri Lanka’s Commission to Investigate Allegations of Bribery or Corruption (CIABOC) has presented evidence in the Colombo Magistrate's Court implicating former President Mahinda Rajapaksa in a long-running bribery scandal connected to an Airbus aircraft deal. The allegations stem from a confession by former SriLankan Airlines CEO, Kapila Chandrasena, who now claims his statement was obtained under duress.

The case centers on the distribution of bribe money paid by Airbus to secure an aircraft order. According to CIABOC's submissions, Chandrasena confessed to delivering Rs. 60 million to Mahinda Rajapaksa in three installments. A further Rs. 20 million was allegedly paid to former Civil Aviation Minister Priyankara Jayaratne. This development brings the scandal to the highest levels of Sri Lanka's former government, creating significant political fallout and further complicating the future of the financially distressed national carrier.

The defense, however, is challenging the validity of the confession. Sagara Kariyawasam, General Secretary of the Sri Lanka Podujana Peramuna (SLPP) party, has publicly stated that Chandrasena was threatened by CIABOC officials. This position is supported by a legal affidavit from Chandrasena, who asserts he was intimidated and denied legal counsel during his interrogation, leading to the forced inclusion of political names in his statement.

Background: The Global Airbus Settlement

The domestic investigation in Sri Lanka is a direct consequence of a landmark international anti-corruption case. In January 2020, Airbus SE agreed to a record €3.6 billion global penalty to resolve bribery and corruption charges with authorities in the United Kingdom, France, and the United States. The settlement came after probes revealed a systemic, multi-year practice of using third-party intermediaries to bribe officials and influence aircraft purchase decisions worldwide.

The UK Serious Fraud Office (SFO), through a Deferred Prosecution Agreement (DPA), specifically detailed the SriLankan Airlines scheme. The SFO found that Airbus had offered up to $16.84 million in bribes to influence the purchase of 10 aircraft and the lease of four more. Ultimately, $2 million was paid to a Brunei-based shell company owned by the wife of Kapila Chandrasena.

Stakeholder Impact

The scandal's resurgence has a severe impact on key stakeholders. For SriLankan Airlines, the continuous association with corruption damages its brand and complicates ongoing government efforts to privatize the state-owned enterprise. The airline is already burdened by massive debt, with accumulated losses estimated at Rs. 596 billion ($1.9 billion) as of March 2025. For the SLPP political party, the direct implication of its senior figure, Mahinda Rajapaksa, undermines its credibility. For Airbus, while the case was officially settled via the 2020 DPA, domestic prosecutions in customer countries like Sri Lanka serve as a persistent reminder of the company's past corrupt practices, creating lingering reputational challenges.

Historical Precedent

This situation is highly analogous to a similar case involving another state-owned carrier in the region. In May 2020, the former CEO of Garuda Indonesia, Emirsyah Satar, was sentenced to eight years in prison for accepting bribes from both Airbus and Rolls-Royce related to aircraft and engine procurement. The conviction in Indonesia demonstrated that the global settlements could trigger severe domestic legal consequences for the individuals who accepted the bribes, a pattern that appears to be repeating in Sri Lanka.

What Comes Next

The legal proceedings are set to continue. The Colombo Magistrate's Court has scheduled the next remand hearing for Kapila Chandrasena for April 2, 2026. The central issue will likely be the admissibility of his confession, given the formal claims of coercion and duress that have now been entered into the record. The outcome of this legal challenge will determine the trajectory of the investigation into the alleged involvement of senior political figures.

Why This Matters

This case highlights the critical intersection of global anti-corruption enforcement and domestic political accountability. It demonstrates how international legal actions, such as the Airbus DPA, can have long-lasting and disruptive effects within customer countries years later. For the aviation industry, it underscores the reputational and financial damage that corrupt procurement practices inflict on airlines, particularly state-owned carriers struggling with debt and governance issues.