SriLankan reacts to our story

SriLankan Airlines has responded to last week’s story headlined “Plainsailing powers for SriLankan bosses.’ It says it wants to “clarify and place on record the facts.”

The article states that the decision to pay compensation to Aercap as penalty has been made by the then Chief Executive Officer, Kapila Chandrasena, without approval either by the Cabinet of Ministers or the Attorney General.

“SriLankan Airlines clarifies that the termination of A350- 900 leases was part of the restructuring plan which was approved by the Cabinet in June 2015, and the cancellation of leases was subsequently approved by the Cabinet, by which time Mr. Chandrasena was no longer with the company.

“The letter quoted in the article sent by the Secretary to Public Enterprise Development Ministry Mr. R . Hewawitharana to Chairman Mr. Ajith Dias states ‘ the Cabinet and the CCEM had requested his involvement in the transaction leading to the entering of Agreement and that he was never requested to be a member…’

“This letter was duly replied to by CEO Captain Suren Ratwatte with copies of Cabinet approval on the termination of aircraft leases. In his letter he has elaborated that the final discussions with Aercap were held by the Ministry of Finance with the Concurrence of Ministry of Public Enter prise Development.

As such, inclusion of representatives was at the discretion of the two entities concerned and was beyond the matters of the Airline.

“The article erroneously reports that Mr. Hewawitharana’s letter promoted ( sic) four directors of the Airline to write to Chairman Mr. Ajith Dias claiming that the management has unnecessarily risked placing the company to legal claims.”

Jamis Banda adds: Interesting indeed. This order, it has now transpired, cost double the assets owned by SriLankan, according to testimony before the Commission of Inquiry. And the Cabinet of Ministers, too, according to SriLankan Airlines, has been a party.