Sri Lankan Airlines Alleges $22 Million Fraud by Indian Staff

Sri Lankan Airlines, still wrestling with the fallout of the country’s 2022 financial crisis, has now pointed the finger at a ring of its own Indian‑based staff. According to a statement released on Tuesday, the employees allegedly pulled off a fraud that cost the carrier roughly $22 million.

It sounds almost like a script – the workers, who were employed in the airline’s ticketing and travel‑agency division in New Delhi, are said to have created fictitious ticket bookings, sold them at heavily discounted rates and then pocketed the difference. In addition, bogus service‑charge invoices were generated and fed into the company’s accounting system, inflating expenses that never really happened.

“We are deeply disappointed,” said the airline’s senior executive, Dr. Nadeesha Aluwihare, during a brief press briefing. “Such misconduct not only hurts our balance sheet but also erodes the trust of our passengers and partners.” She added that the airline has already lodged formal complaints with Indian law‑enforcement agencies and that a forensic audit is underway.

The alleged scheme reportedly spanned over a period of 18 months, during which the culprits managed to hide their tracks by using multiple shell companies and routing the money through several offshore accounts. While the exact number of people involved has not been disclosed, sources close to the investigation suggest that at least a dozen employees may be under scrutiny.

Indian authorities, for their part, have said they are cooperating fully with the airline’s probe. A senior official from the Delhi Police’s Economic Offences Wing told reporters that a case file has been opened and that “all necessary steps” will be taken to bring the perpetrators to justice.

For an airline that has been trying to claw its way back to profitability after years of cash shortages, a $22 million hit is a heavy blow. “We’re already operating on thin margins,” Aluwihare admitted, “so every lost dollar matters.” The incident also comes at a time when the carrier is seeking to revive its fleet and expand routes to neighboring markets.

Industry analysts say that while the fraud is certainly a setback, it also highlights the importance of stronger internal controls, especially for carriers that outsource functions across borders. “A more robust audit trail and real‑time monitoring could have flagged the irregularities much earlier,” one expert noted.

As the legal process unfolds, Sri Lankan Airlines has promised to keep the public informed and to reinforce its anti‑corruption policies. In the meantime, passengers are being reassured that their bookings remain secure and that the airline is taking steps to prevent any future mishandling of funds.