‘Shocking’ Airbus scandal spurs SriLankan to pursue compensation

The government of Sri Lanka is considering ways of recovering damages, including claiming compensation from Airbus, after the European planemaker admitted to bribing executives to win aircraft orders. “The reputational damage was huge, enormous,” Vipula Gunatilleka, CEO of state-run SriLankan Airlines, said at the Singapore Airshow on Wednesday. “That’s why our government is looking at certain remedial action.” Airbus two weeks ago admitted to illegally trying to sway plane sales and agreed to a record $4b bribery settlement. That included bribing the wife of a SriLankan Airlines official, who received $2m through a Brunei shell company, according to the UK‘s Serious Fraud Office. Following the settlement, Sri Lankan prosecutors said Kapila Chandrasena, the ex-CEO of SriLankan, and his wife, Priyanka Niyomali Wijenayaka, were suspects in a money-laundering case linked to Airbus aircraft sales. An attempt by the Sri Lankan government to sell a 49% stake in the carrier seems to be off the table, Gunatilleka said. The airline is restructuring, and that should be enough to revive its fortunes, he said.<br/>