By Jehan Perera –

Jehan Perera

The death of the most important suspect in the SriLankan Airlines Airbus deal has drawn intense public speculation. Kapila Chandrasena the former CEO of the heavily loss-making national airline was found dead under circumstances that the police are still investigating.

He had recently been arrested by the Commission to Investigate Allegations of Bribery or Corruption in connection with the controversial Airbus aircraft purchase agreement signed in 2013. Police investigations are continuing into the cause of death and whether or not he committed suicide. The unresolved death brings  to light the high stakes involved in accountability efforts of this nature.

The uncertainty surrounding Chandrasena’s death has revived public memories of other mysterious deaths linked to corruption investigations and public scandals. Among them is the death of Rajeewa Jayaweera, a former SriLankan Airlines executive and outspoken critic of the Airbus transaction. He was following in the tradition of his father, the late foreign service officer and public servant Stanley Jayaweera who mentored the younger generation in good governance practices and formed the group “Avadhi Lanka” along with icons such as Prof Siri Hettige. Rajeewa had written a series of articles exposing irregularities in the deal before he was found dead near Independence Square in Colombo in 2020. The CCTV cameras in that high security area were turned off. Questions raised at that time whether or not he had committed suicide were not satisfactorily resolved.

The controversy about the cause of Chandrasena’s death is diverting attention away from the massive damage done to the country by the SriLankan Airlines deal itself. The value of the aircraft agreement was close to the size of the International Monetary Fund bailout package that Sri Lanka desperately needed by 2023 in order to stabilise the economy after bankruptcy. Sri Lanka’s IMF Extended Fund Facility amounted to about USD 3 billion spread over four years. The comparison shows the scale of the losses and liabilities that irresponsible and corrupt decisions have imposed on the country and which must never happen again.

Wider Pattern

The corruption linked to the Airbus transaction came fully into the open only because of investigations conducted outside Sri Lanka. In 2020 Airbus agreed to pay record penalties of more than EUR 3.6 billion to authorities in Britain, France and the United States to settle global corruption investigations. Sri Lanka was identified as one of the countries where bribes had allegedly been paid in order to secure contracts. The Airbus deal involved the purchase of six A330 aircraft and four A350 aircraft valued at approximately USD 2.3 billion. Investigations showed that Airbus paid bribes amounting to nearly USD 16 million in order to secure the contract. According to court submissions, at least part of this money amounting to USD 2 million was transferred through a shell company registered in Brunei and routed through Singapore bank accounts linked to the late airline CEO and his wife.

The commissions involved in this deal may seem comparatively small compared to the overall value of the contracts but devastating in their consequences. But they also show that a few million dollars paid secretly to decision makers could lead to the country assuming liabilities worth hundreds of millions or even billions of dollars over decades. This is why corruption is not simply a moral issue. It is a direct economic assault on the living standards of ordinary people. Money lost through corruption is money unavailable for schools, hospitals, rural development and job creation. In the end the burden falls on ordinary citizens who are left to repay debts incurred in their name without receiving commensurate benefits in return.

The SriLankan Airlines transaction gives an indication of the wider pattern of corruption and misuse of national resources that has taken place over many years. This was not an isolated incident. There were numerous large scale infrastructure and procurement projects that imposed heavy debts on the country while enriching politically connected individuals and their associates. Other projects such as the Colombo Port City, Hambantota  Harbour and highway construction reveal a similar pattern. Less publicised but equally damaging scandals have involved fertiliser medicine and energy contracts. Investigations into medicine procurement in recent years uncovered allegations that substandard pharmaceuticals had been imported at inflated prices causing both financial losses and risks to public health.

Moral Renewal

The present government appears determined to investigate major corruption cases in a manner that no previous government has attempted. Those who ransacked and bankrupted the treasury need to be dealt with according to the law. There is considerable public support for efforts to recover stolen assets and ensure accountability. In his May Day speech President Anura Kumara Dissanayake stated that around 14 corruption cases were nearing completion in the courts this very month and called upon the public to applaud when verdicts are delivered. Political opponents of the government claim that such comments could place pressure on the judiciary and blur the separation between political leadership and the courts. But the deeper public frustration that underlies the president’s remarks also needs to be understood.

The challenge facing Sri Lanka is twofold. The country must ensure that justice is done through due process and independent institutions. If anti corruption campaigns become politicised they can lose legitimacy. But if corruption and abuse of power continue without consequences the country will remain trapped in a cycle of economic decline and moral decay. Sri Lanka also needs to confront past abuses linked to the war period. There are allegations of kidnapping, extortion, disappearances and criminal activity in which members of the security forces have been implicated. Vulnerable sections of the population suffered greatly during those years. If political leaders turned a blind eye or actively connived in such crimes they too need to be held accountable under the law. Selective justice will not heal the country. Accountability must apply across the board regardless of political position, ethnicity or institutional power.

Sri Lanka has paid a very heavy price for corruption and impunity. The economic collapse of 2022 did not occur overnight. It was the result of years of bad governance, reckless decision making, abuse of power and the misuse of public wealth. If the country is to move forward the focus cannot be diverted by sensational speculation alone. Suspicious deaths and political intrigue may dominate headlines for a few days. But the larger issue is the system that enabled corruption to flourish without accountability for so long. The real national task is to end that system. Sri Lanka cannot build a prosperous future on a foundation of corruption and impunity. Unless those who looted public wealth are held accountable and the systems that enabled them are dismantled, the country risks repeating the same cycle again.