SriLankan Airlines has issued a clarification regarding two separate incidents of financial transactions involving an erroneous payment linked to a compromised email account of a service provider in the UAE) and an alleged misappropriation of funds in India, confirming that investigations currently underway.

According to the national carrier, a payment amounting to AED 974,000 in the UAE was fraudulently redirected after the email account of a Dubai-based service provider was compromised.

In a separate incident, it said that certain employees at the airline’s Chennai office in India are alleged to have misappropriated INR 22 million by altering invoices and payment details.

The airline stated that investigations are ongoing in both cases.

Accordingly, SriLankan Airlines today issued a clarification regarding the two separate financial transactions involving an erroneous payment linked to a compromised email account of a service provider in the United Arab Emirates (UAE), as well as alleged misappropriation of company funds in India.

SriLankan Airlines stated that it was informed by a Dubai-based service provider that it had not received funds for a payment of AED 974,000 made to them. It was subsequently discovered that the service provider’s email account had been compromised by a third party, who allegedly altered bank account details and provided additional documentary proof through established official communication channels, thereby misleading the airline into believing it was dealing directly with the legitimate service provider.

The airline further stated that it took immediate action to prevent any further payments to the said account and reported the matter to the relevant authorities in the UAE and the Criminal Investigation Department in Sri Lanka. It added that investigations are currently ongoing in both Sri Lanka and the UAE. 

SriLankan Airlines reiterated that the payment was made based on established email instructions and supporting documentation with authorised signatures, which were later found to have been fraudulently generated from the compromised account. It also stated that it disclaims and denies any liability to the service provider for non-receipt of funds, citing that the situation arose due to a compromise of the service provider’s email system, which was outside its control.

“With regard to the misappropriation of funds at SriLankan Airlines’  office in Chennai, India, the Airline wishes to inform that a few employees, all Indian nationals working in the finance department in Chennai, are alleged to have misappropriated a total of INR  22 million over a period of time by fraudulently altering invoices, payment details and signatures,” it said.

It further noted that its Head Office in Colombo detected unusual payments and initiated an internal investigation.

Following the investigation, the employees concerned reportedly ceased reporting to work, and appropriate action was taken against them. 

The airline added that the matter has been referred to the relevant Indian law enforcement authorities, with investigations currently ongoing and steps being taken to recover the losses.