ECONOMYNEXT – Sri Lanka officials are in intense level discussions on a complex compensation litigation related to a corrupt Airbus deal, Deputy Finance Minister Harshana Suriyapperuma said.
The state-carrier has demanded compensation from France-based Airbus, which was found by UK authorities in 2018 of bribing to SriLankan Airlines officials in a deal.
International and local investigations have clearly pointed towards the involvement of bribes and misappropriations in the 2013 Airbus deal.
In 2013, SriLankan Airlines entered into agreements to purchase six Airbus A330-300 and four A350-900 aircraft, alongside leasing an additional four A350-900s.
Subsequent investigations revealed that Airbus had engaged in corrupt practices to secure these contracts.
The British court documents revealed that the wife of then SriLankan executive in 2013 had acted as an agent for the procurement of Airbus aircraft, and Airbus had offered a bribe of $16.84 million.
Airbus agreed to pay around 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 sales.
In March 2021, SriLankan Airlines sued Airbus for $1 billion in damages, loss of reputation, reimbursement of costs, and interest.
“As we speak, a lot of discussions are happening and experts are involved from both sides. The new board that has been appointed are making all the efforts to get the best outcome for the country,” Deputy Minister Suriyapperuma told reporters on Saturday (01).
“We have unearthed a lot of information relating to the matter. So, intense level discussions are going on. But it is subjected to a process that is not in our hands. Some of these matters are within international jurisdiction. That is not in our hands. We believe that we will be able to get a good outcome.”
The national carrier also has demanded the cancellation of the A350-900 Purchase Agreement for four A350-900 aircraft, seeking the return of the $19 million advance payment made for those aircraft.
However, progress and the details on this legal case remain undisclosed.
“It’s a complex matter. Several legal experts are involved in this case. So we don’t need to predict the existing process that is taking place,” Suriyapperuma said. (Colombo/March 03/2025)
