Former SriLankan CEO Kapila Chandrasena found dead amid Airbus probe

Kapila Chandrasena

Former SriLankan Airlines Chief Executive Officer Kapila Chandrasena was found dead yesterday at a residence in Colpetty yesterday, with Police fist suspecting suicide and then claiming suspicious death.

Police later told court that they were treating the death as suspicious and ensuing further investigations.

Chandrasena had recently been released on bail after being remanded over allegations connected to the SriLankan Airlines Airbus deal. However, the Colombo Magistrate’s Court on Wednesday ordered his arrest and production before court after the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) sought cancellation of his bail. 

An engineer by profession, Chandrasena held senior positions at SriLankan Airlines before being appointed CEO of the national carrier. He also served as CEO of the now-defunct Mihin Lanka. 

The Airbus controversy stemmed from aircraft procurement transactions carried out during the previous Rajapaksa administration. The matter gained international attention after Airbus admitted in a UK court in 2020 to paying bribes in multiple countries, including Sri Lanka, to secure aircraft contracts. Sri Lankan investigators later alleged Chandrasena solicited and accepted a $ 2 million bribe linked to the procurement process. 

Investigators alleged that funds had been transferred through a Singapore bank account maintained under Biz Solutions, a company where Priyanka Neomali Wijenayaka was listed as sole director and shareholder. According to investigative material submitted to the Attorney General’s Department, the account allegedly received $ 2 million from European Aeronautic Defence and Space Company (EADS) N.V., the parent company of Airbus SAS, in December 2013. Authorities claimed the funds, estimated at around Rs. 363 m, were linked to the aircraft procurement deal. 

Chandrasena was first arrested in 2020 and later released on bail. Earlier this year, CIABOC rearrested him over allegations that he accepted the bribe in exchange for facilitating the purchase of Airbus aircraft at inflated prices. 

The case drew further international scrutiny in 2023 when the United States imposed sanctions and visa restrictions on Chandrasena under Section 7031(c), citing “significant corruption”. The sanctions extended to his immediate family members. 

The investigation intensified in recent months after CIABOC informed court that Chandrasena had allegedly claimed portions of the funds received through the Airbus deal were distributed to senior political figures. According to court submissions, he had alleged payments of Rs. 60 million to former President Mahinda Rajapaksa and Rs. 20 million to former Civil Aviation Minister Priyankara Jayaratne. Both were subsequently summoned by CIABOC to record statements. 

However, Chandrasena later retracted the allegations through an affidavit released by his lawyers, claiming the statement had been obtained under intimidation and pressure and that he had been denied access to legal counsel while being questioned. CIABOC has not publicly responded in detail to those claims. 

The investigation later widened to include open warrants issued against former SriLankan Airlines board member Shamindra Rajapaksa and Priyanka Neomali Wijenayaka after they failed to appear before court. Immigration authorities were directed to arrest them upon entry into the country. 

Further controversy emerged days before Chandrasena’s death after two individuals were arrested for allegedly appearing as fake bail sureties in exchange for Rs. 15,000 each. Police told court the suspects had allegedly used questionable documentation, including Grama Niladhari certificates, during the bail process.