SriLankan signed MoU with Airbus without cabinet approval in 2013

Colombo (News 1st): Minister Ravi Karunanayake, arrived at the Presidential Commission of Inquiry into Irregularities at SriLankan Airlines, SriLankan Catering, and Mihin Lanka, to record a statement today (Feb 28). Meanwhile, it was revealed that SriLankan Airlines signed an MoU in 2013 with Airbus to purchase 10 aircraft worth more than Rs. 146.1 billion, without cabinet approval. On March 16th 2013, SriLankan entered into an MoU with Airbus, to procure 10 aircraft worth Rs. 146.1 billion rupees. The MoU which was worth almost twice as much as SriLankan's total balance sheet assets of Rs. 89.4 billion that year required cabinet approval. However, the relevant documents were submitted to the cabinet by the Minister of Civil Aviation only in April 2013. Testifying at the commission today, Head of Group Legal Affairs at SriLankan Mayuka Ranasinghe further stated, that the MOU was signed by then Chairman Nishantha Wickremesinghe, who did not have the authority to do so. He stated that as per the procurement policies of SriLankan, any agreement with a value of more than Rs.100 million should be signed by the CEO and the procurement policies do not vest signatory authority in any Non-Executive Director.