President orders probe into state-run aviation entities

President Anura Kumara Dissanayake has launched a high-level investigation into the alleged fraud and governance failures at SriLankan Airlines Ltd and Airport and Aviation Services, two of the country’s key state-owned enterprises in the aviation sector, the President’s Media Division said.

The probe will examine the alleged misconduct spanning 2010 to 2025, including abuse of power, procurement anomalies, aviation security lapses and financial discrepancies. Among the key concerns are irregularities in awarding service contracts, flawed recruitment practices and questionable transactions related to duty-free operations and overseas sales agents. 

The investigation will also cover instances of administrative failures and external interference that may have undermined operational efficiency. Additionally, the committee will assess corruption linked to the procurement, leasing or acquisition of aircraft and other goods and services valued at over Rs.10 million, extending the review period back to 2000.

During a meeting held on Tuesday at the Presidential Secretariat with the newly appointed committee members, Dissanayake said the absence of a credible investigation into the two institutions had rendered them largely ineffective. He urged the committee to expedite its inquiry, examine all relevant facts and present a comprehensive report with corrective recommendations to prevent the recurrence of such issues.

The committee is chaired by Additional Secretary to President K.N.M. Kumarasinghe. Its members include retired Auditor General H.M. Gamini Wijesinghe, retired Customs Additional Director General Gnanasiri Senanayake, National Savings Bank Chairman Dushantha Basnayake, Attorney-at-Law Don Chaminda J. Athukorala and Public Enterprises Department Additional Director General N.A.H.K. Wijeratne. 

The committee will also evaluate the findings from the J.C. Weliamuna Committee Report and the Auditor General’s Special Investigation Report, with the aim of identifying the individuals responsible for the alleged misconduct. The final report is expected to offer policy recommendations to strengthen oversight and improve governance at both institutions.