Thu, 16 Sep 2021 Today's Paper

SriLankan Airlines Presidential Probe: Aircraft worth Rs. 146 bn bought by UL violating procurement

29 March 2019 12:54 am - 0     - {{hitsCtrl.values.hits}}

A A A

By Yoshitha Perera

A former CEO of SriLankan Airlines Kapila Chandrasena had continued the agreement with Airbus Company in 2013, to purchase the aircraft worth Rs.146.1 billion for re-fleeting; despite the Head of Finance informing that there was a bad cash flow position in SriLankan Airlines during that time, the Presidential Commission of Inquiry into irregularities at SriLankan Airlines, SriLankan Catering and Mihin Lanka was told yesterday.

Head of Finance at SriLankan Airlines, Yasantha Dissanayake informed the Commission that a former Chairman Nishantha Wickramasinghe had signed a Memorandum of Understating (MoU) with the Airbus Company to purchase aircraft for re-fleeting, violating the Procurement Guidelines and also without considering the bad cash flow of the Company.   
“According to the Procurement Guidelines of SriLankan Airlines Chairman has no authority to sign MoUs, it was the CEO, who has the authority to perform such action,” he said.   
Dissanayake also informed the Commission he had suggested the SriLankan Board of Directors to consider an affordable re-fleeting structure.  
Earlier it was revealed to the Commission that SriLankan only had assets worth Rs. 89.4 billion at that time when the Company came to an agreement with Airbus in 2013, worth Rs. 146.1 billion. It was also revealed that the decision taken by SriLankan to purchase four Airbus A350-900 and lease another four amounted to more than 50% of the total SriLankan assets in 2013.   


Article 184.2 of the Company Act as well as the articles of association of SriLankan state that a resolution needs to be adopted by the Board of Directors when such a major transaction is to take place.   


Earlier Dissanayake informed the Commission that while the government capital infusion, which commenced in 2012 had improved their balance sheets, the financial status of the airline was dire.   

 

See Kapruka's top selling online shopping categories such as Toys, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,News, Courier/Delivery, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka.

  Comments - 0

See Kapruka's top selling online shopping categories such as Toys, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,News, Courier/Delivery, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka.

 


Add comment

Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.

Reply To:

Name - Reply Comment




See Kapruka's top selling online shopping categories such as Toys, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,News, Courier/Delivery, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka.

 


Mysterious disease killing pups!

A mysterious respiratory disease affecting puppies in the Central Province is

Jacqueline Fernandez; Lankan Star Shining in Indian Film Sky

Sri Lanka’s Jacqueline Fernandez who has made a name for herself in India

Young families share stories of pregnancy in a pandemic

For hundreds of expectant and new mothers, pregnancy and childbirth are nothi

“Your travel plans should not come first” – Dr. Dinu Guruge

In a recent live discussion on fighting the Covid-19 pandemic hosted by Daily