By Roy Denish.
A$1.4 million in payments, inflated commissions and contracts that allegedly bypassed board approval have placed SriLankan Airlines’ overseas sales deals under fresh scrutiny.
Investigation Uncovers A$1.4 Million Payout
An investigation into widespread financial irregularities at SriLankan Airlines has revealed that controversial General Sales Agent Sasanka Dilan Ariyawansa was paid A$1.4 million through a series of highly favourable, fast-tracked contracts that allegedly bypassed standard corporate oversight.
The payout has intensified scrutiny over how the financially troubled State-run carrier managed its international revenue markets.
Presidential Commission Examines Airline Contracts
The payments were uncovered during extensive hearings conducted by the Presidential Commission of Inquiry into irregularities at SriLankan Airlines.
According to official commission testimony from former airline management officials, travel and aviation agencies controlled by Ariyawansa were systematically awarded highly lucrative General Sales Agency contracts across several major international revenue markets.
These contracts reportedly covered the airline’s operations in Russia, North America and Australia.
Australian GSA Appointed in 2014
In the Australian market, Ariyawansa’s company, Sri Lankan Aviation Limited, was officially appointed as SriLankan Airlines’ General Sales Agent in 2014.
However, testimony from former executives revealed that the initial commission rate of five percent was increased to seven percent within only a few months of operation.
Commission Increased Without Proper Evaluation
Investigators found that the significant commission increase was granted without a formal cost-benefit analysis or proper financial evaluation.
The revised financial terms also reportedly bypassed standard board approval procedures.
This allegedly violated the airline’s established operational manuals and resulted in substantial unauthorised financial outflows from the national carrier to Ariyawansa’s business operations.
Broader Pattern of Preferential Agreements Alleged
The A$1.4 million payment highlights a broader pattern of preferential contract terms and inflated commission rates identified in internal audits and investigative reports concerning overpaid General Sales Agency agreements.
The arrangements have raised questions about whether commercial decisions were made in the airline’s best financial interests.
Contracts Blamed for Financial Drain
The Presidential Commission of Inquiry identified these agreements as major sources of unnecessary financial leakage.
Investigators believe the payments contributed significantly to the severe economic strain experienced by the national carrier.
Commission officials are continuing to examine internal audits, corporate records and witness testimony to determine who authorised the agreements and whether legal accountability should follow.
