ECONOMYNEXT – A former CEO of state-owned Sri Lankan Airways, who’s the important thing accused in a corrupt Airbus deal, was discovered useless within the early hours on Friday (08) in Colombo, police mentioned, days after he was granted bail.
Kapila Chandrasena, the ex-CEO of the loss-making SriLankan beneath former President Mahinda Rajapaksa was arrested on March 12 for allegedly accepting bribes whereas serving because the CEO of Sri Lankan Airways and the pinnacle of the Procurement Committee for the acquisition of Airbus plane.
He was granted bail on Tuesday (05) after being questioned for 54 days. His dying occurred a day after the Colombo Justice of the Peace Court docket issued an arrest warrant towards Chandresena for violating bail situations.
In March, he was arrested for the second time within the final seven years over a 2013 corrupt Airbus deal, which a British courtroom discovered concerned the French plane producer paid US$2 million to a shell firm arrange in Brunei beneath his spouse’s title.
Airbus deal is without doubt one of the controversial corrupt offers that befell beneath former President Mahinda Rajapaksa’s administration, and in depth investigations have been carried out following the British Court docket revelations.
The dying additionally occurred when the island nation’s anti-graft physique, the Fee to Examine Allegations of Bribery or Corruption (CIABOC), summoned former President Mahinda Rajapaksa and his then Aviation Minister to file statements on Might 12 relating to the Airbus deal.
Native media reported in March that through the investigation, Chandrasena had revealed he handed over Rs. 60 million from the US$2 million to Rajapaksa and one other Rs. 20 million for then-Aviation Minister.
“Compelled to Hold”?
Nevertheless, later in an affidavit seen by EconomyNext, he mentioned a high CIABOC official requested him to take the chance to disclose the 2 politicians behind the Airbus deal.
Within the affidavit, Chandrasena additionally mentioned a high CIABOC official threatened him that he “can be compelled to hold” if he didn’t use the chance.
The CIABOC mentioned in March that Chandrasena conspired along with his spouse and others to arrange a shell firm in Brunei Darussalam in his spouse’s title, opened a checking account in Singapore beneath that firm’s title, and acquired a sum of EUR 1,454,645.54 as bribe cash from the European Aeronautic Protection and Area Firm.
It mentioned Chandrasena transferred the bribe cash to his personal account on the Commonwealth Financial institution of Australia and to a number of different people, together with the then Director Basic of Sri Lankan Airways.
Chandrasena and his spouse, Priyanka Wijenaike, have been first remanded in February 2020 after the British courtroom discovered that Airbus had paid $2 million to Biz Options Inc., a shell firm arrange in Brunei in 2012.
Investigators revealed the cash was transferred to the corporate’s Singapore account.
Chandrasena served because the CEO of SriLankan from July 2011 to February 2015, throughout former President Rajapaksa’s second time period.
British courtroom paperwork in 2020 revealed that his spouse acted as an agent for the procurement of Airbus plane, and Airbus supplied a bribe of $16 million.
Namal Questioned
In March final 12 months, the Legal Investigation Division (CID) of Sri Lanka Police questioned former President Mahinda Rajapaksa’s legislator son, Namal Rajapaksa, over receiving fee from the Airbus deal when his father was in energy.
Junior Rajapaksa was questioned for over 4 hours primarily based on an announcement given by a state witness who had been questioned for his reported involvement within the cash laundering.
The witness, a widely known shut ally of Rajapaksa and a businessman, mentioned that he facilitated the switch of money from the Airbus deal and handed it over to Namal Rajapaksa.
Namal Rajapaksa has denied the allegations and mentioned the brand new authorities is making an attempt to attribute all unexplained wealth instances towards the Rajapaksas.
Worldwide and native investigations have clearly pointed in the direction of the involvement of bribes and misappropriations within the 2013 Airbus deal.
Chandrasena’s 2020 arrest order adopted revelations in paperwork filed in a UK courtroom about funds made to his spouse’s firm by Airbus in a 2013 gross sales contract.
He and his spouse have been later granted bail with their passports impounded.
Airbus agreed to pay round 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 gross sales.
The Sri Lankan Authorities beneath Rajapaksa’s successor, Maithripala Sirisena, investigated the deal, however no person was held accountable till his tenure resulted in 2019.
Till the British courtroom discovered proof of bribery and misappropriation, Sri Lankan authorities couldn’t arrest anybody in reference to the deal.
The protracted delay in investigating the SriLankan Airways-Airbus corruption scandal, regardless of substantial proof of misconduct, underscores challenges inside Sri Lanka’s authorized and political techniques.
Underneath President Anura Kumara Dissanayake’s administration, the authorities pushed for a contemporary probe into the Airbus deal.
Systemic Corruption
The Airbus deal probe involving alleged bribery and monetary irregularities in plane procurement highlights systemic points that impede justice and accountability in Sri Lanka.
Taxpayers proceed to endure because of the Airbus deal. The Authorities has been funding the loss-making airline due to previous money owed, together with funds for the overpriced Airbus plane.
In 2013, SriLankan Airways entered into agreements to buy six Airbus A330-300 and 4 A350-900 plane, alongside leasing an extra 4 A350-900s.
Subsequent investigations revealed that Airbus engaged in corrupt practices to safe these contracts.
Airbus allegedly supplied as much as $16.84 million in bribes to an organization registered in Brunei, which was owned by Priyanka Niyomali Wijenaike, the spouse of then-CEO of SriLankan Airways, Chandrasena.
Of this quantity, $2 million was transferred to the corporate’s account in Singapore in December 2013.
The scandal got here to worldwide consideration in January 2020 when Airbus settled corruption probes with authorities in the USA, United Kingdom, and France, agreeing to pay the fines.
This settlement included admissions of bribery by Airbus in a number of international locations, together with Sri Lanka.
In response, Sri Lankan authorities initiated investigations, resulting in the arrest of Chandrasena and his spouse in February 2020 on fees of cash laundering associated to the Airbus deal.
Regardless of these arrests, progress within the authorized proceedings had been minimal.
After their preliminary detention, each Chandrasena and his spouse have been launched on bail in March 2020. Till his arrest in March this 12 months, there was a conspicuous absence of substantive developments within the case.
The stagnation has raised essential questions in regards to the efficacy of Sri Lanka’s judicial processes and the potential affect of political and institutional components in high-profile corruption instances.
Sri Lanka’s political panorama is usually characterised by intricate networks of patronage and affect.
People implicated in high-level corruption instances steadily have connections to highly effective political figures, which might result in interference in authorized proceedings.
Such interference might manifest as strain on investigative our bodies, manipulation of authorized processes, or deliberate stalling of instances to guard associates.
Chandrasena’s dying on Friday has raised many questions on the corrupt deal amid the present authorities’s goals to proceed with the stalled instances.
When the British courtroom paperwork revealed his involvement, then-President Gotabaya Rajapaksa ordered a full inquiry into allegations {that a} former SriLankan Airways govt’s spouse acquired the $2 million cost.
Nevertheless, there was no progress because of the Covid-19 pandemic and the next financial disaster.
The U.S. State Division had imposed journey sanctions on Chandrasena and his household over the Airbus deal.
In March 2021, SriLankan Airways sued Airbus for $1 billion in damages, lack of fame, reimbursement of prices, and curiosity.
The nationwide service additionally demanded the cancellation of the A350-900 Buy Settlement for 4 A350-900 plane, looking for the return of the $19 million advance cost made for these plane.
Nevertheless, progress on this authorized case stays undisclosed, even beneath the brand new authorities. (Colombo/Might 08/2026)
