Current status of the Airbus deal

During the presidency of Mr. Mahinda Rajapaksa in the years 2012-2013, a massive agreement worth USD 2.3 billion was signed under the leadership of Mr. Kapila Chandrasena, the then CEO of SriLankan Airlines, to purchase 10 aircraft (A330 and A350 models) from Airbus. This transaction, carried out with the aim of replacing old aircraft and modernizing the airline, later emerged as a massive international bribery scandal.

International investigative agencies, including the UK's Serious Fraud Office (SFO), confirmed that Airbus had paid bribes worldwide, and as a result, in 2020, the company was forced to pay a fine of EUR 3.6 billion in the UK, France, and the US. Sri Lanka was also named as one of the main countries involved in this global bribery network.

It is primarily alleged that Airbus agreed to pay a bribe of between USD 16 million and 16.84 million to secure this aircraft deal. According to investigations, Kapila Chandrasena and his wife, Priyanka Neomali Wijenaike, established a shell company named 'Biz Solutions Inc.' in Brunei. Subsequently, nearly USD 2 million (approximately EUR 1.45 million) of the bribe money was circulated through a bank account in Singapore and then transferred to accounts in Australia and Sri Lanka. Additionally, names associated with the Rajapaksa family, such as Shamindra Rajapaksa, have been mentioned in connection with receiving smaller payments of approximately USD 160,000 through this bribery network.

Due to political interference, the purchase of aircraft at exorbitant prices, and massive corrupt practices, this deal directly contributed to SriLankan Airlines incurring massive losses amounting to hundreds of millions of US dollars over several years. In light of this situation, the new management of the airline, appointed in 2025, demanded USD 232.6 million in compensation from Airbus. The compensation claim included cash, payments made before aircraft delivery, and 4 free A330-900 model aircraft.

The legal proceedings related to this fraud intensified in 2026, and with the assistance of the Criminal Investigation Department, the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) re-arrested Mr. Kapila Chandrasena on March 12, 2026. Subsequently, on March 19, 2026, the Bribery Commission made a controversial revelation at the Colombo Chief Magistrate's Court, stating that Mr. Kapila Chandrasena had provided a recorded statement claiming that LKR 60 million (approximately USD 461,000 at the time) from the bribe money was given to former President Mahinda Rajapaksa on three occasions. It was also revealed that another LKR 20 million was given to former Aviation Minister Priyankara Jayaratne.

However, Mr. Kapila Chandrasena later completely denied these allegations and payments through an affidavit, stating that the statement was forcibly obtained from him under threats and pressure, using names of family members like Namal Rajapaksa, and by denying him legal assistance. As per the latest developments, on May 5 or 6, 2026, Colombo Chief Magistrate Asanga S. Bodaragama granted bail to Mr. Kapila Chandrasena, imposing a travel ban, a cash bail of LKR 500,000, and three personal bails of LKR 10 million each. He, who was even subjected to US sanctions in 2024 due to this bribery incident, remains the main suspect. No indictments have been filed against the former President or the former Minister so far, and the Bribery Commission is continuing a comprehensive investigation into financial flows through international money laundering networks.