A former senior official at SriLankan Airlines has alleged that the carrier’s commercial division operates “like a cartel,” warning that an internal leadership appointment would perpetuate systemic corruption that has cost the airline billions in revenue leakages.

The accusation comes as SriLankan Airlines prepares to appoint a new chairman and chief executive officer, with senior management reportedly lobbying to install a candidate from within their ranks or from a circle of past executives, including former CEO Peter Hill.

Alleged revenue leakages

The unnamed former official described a pattern of questionable dealings, including kickbacks on sales commissions of 3-6 percent through travel agent arrangements and hidden commission payments of approximately 2 percent even on direct e-commerce bookings — a practice the source said contravenes global aviation industry standards.

SriLankan Airlines recorded a Rs. 2.73 billion loss for the 2024/25 financial year, missing out on the global aviation industry’s recovery. The former insider pointed to the late industrialist Harry Jayawardena as proof that a non-aviation chairman with strong business acumen can succeed at the helm.

Broader accountability context

The allegations add to a growing accountability file at the national carrier. Former CEO Kapila Chandrasena faces Airbus bribery charges, while the airline’s bond restructuring negotiations continue from earlier this year. The carrier employs over 350 managers, many holding advanced degrees — a staffing structure the source suggested is disproportionate to the airline’s operational scale.

No official response from SriLankan Airlines management has been reported.