SriLankan Airlines probes UAE payment fraud, Chennai fund scam

SriLankan Airlines says investigations are underway into an AED 974,000 payment fraud in the UAE and an alleged INR 22 million misappropriation at its Chennai office in India.

The national carrier issued the clarification on May 16, 2026, addressing two separate financial incidents.

UAE incident: payment redirected after email compromise

SriLankan Airlines said it was informed by a Dubai-based service provider that it had not received funds for a payment of AED 974,000. The airline said it later found that the service provider’s email account had been compromised by a third party.

According to the airline, the alleged fraud involved altered bank account details sent through established official communication channels, along with additional documentary proof, which misled the airline into believing it was communicating with the legitimate service provider.

It said the payment was processed based on email instructions and supporting documentation carrying authorised signatures, which were later found to have been fraudulently generated from the compromised account.

The airline said it took immediate steps to prevent further payments to the account and reported the matter to the relevant authorities in the UAE and to the Criminal Investigation Department (CID) in Sri Lanka. Investigations are ongoing in both Sri Lanka and the UAE.

SriLankan Airlines also stated it denies and disclaims liability to the service provider for the non-receipt of funds, saying the situation occurred due to a breach of the service provider’s email system, which was outside the airline’s control.

India incident: allegations at Chennai finance office

In a separate case, SriLankan Airlines said a few employees at its Chennai office, Indian nationals working in the finance department are alleged to have misappropriated a total of INR 22 million over a period of time.

The airline said this was done by fraudulently altering invoices, payment details and signatures.

The airline said its Head Office in Colombo detected unusual payments and began an internal investigation. Following this, the employees concerned reportedly stopped reporting to work, and action was taken against them.

SriLankan Airlines said the matter has been referred to the relevant Indian law enforcement authorities, investigations are ongoing, and steps are being taken to recover the losses.

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