• Govt. says cyber compromise occurred on supplier’s side, not State airline system’s
• Deputy Min. insists diverted $ 220,000 does not amount to financial loss
• CID complaints lodged as investigations continue in SL and Dubai

 

The Government on Friday (15) confirmed that approximately Rs. 80 million linked to a payment by SriLankan Airlines was transferred to an incorrect overseas bank account following a cyber compromise involving a foreign service provider.

Deputy Minister of Ports and Civil Aviation Janitha Ruwan Kodithuwakku told The Sunday Morning that the incident had occurred in March after the email system of a Dubai-based supplier was allegedly hacked, resulting in altered payment instructions being sent to the airline.

The payment, reportedly amounting to nearly $ 220,000, had subsequently been transferred to an unintended account at the Abu Dhabi Islamic Bank. The Deputy Minister maintained that the incident had not resulted in a financial loss to the National Carrier.

“This incident happened during March, and it was not due to any issue within SriLankan Airlines. It was the supplier’s email system that had been hacked. We subsequently made a claim to the institution concerned, and since the payment had already been completed from our side, they removed the amount from our payable account. We now make payments to the corrected account. Therefore, it currently does not appear as a financial loss to SriLankan Airlines,” Kodithuwakku claimed.

He further said that the liability had since been adjusted in the airline’s accounts following discussions with the supplier.

“That amount has effectively been recovered because they have now removed it from our debtor list. Previously, it appeared under liabilities owed to them, but they have adjusted that amount accordingly. Therefore, it is not currently reflected as a loss in our financial statements. This was ultimately a mistake that occurred due to their side being hacked, not ours,” he added.

The matter drew attention after MP Dayasiri Jayasekara called for an immediate investigation into the circumstances surrounding the transaction and the procedural failures that had enabled the diversion of funds.

According to the allegations raised by Jayasekara, the payment intended for a Dubai-based operational agent connected to the airline’s Chennai branch and Dubai operations had been redirected to another account following the cyber compromise.

Responding to the controversy, SriLankan Airlines Manager – Corporate Communications Deepal Perera reiterated that the airline itself had not been subjected to a direct cyber breach and had acted based on what appeared to be legitimate instructions issued through the supplier’s official communication channels.

“This incident occurred sometime in March. One of our suppliers in Dubai had their emails hacked by a third party, and based on the instructions we received through those channels, we made the payment. This was a legitimate payment due to the service provider, and we acted according to the payment instructions sent to us. Apparently, their email system had been compromised by a third party. This is an issue on their side and not a breach within SriLankan Airlines,” Perera claimed.

He added that the airline had immediately informed the relevant authorities and initiated formal complaints once the fraudulent diversion had been discovered.

“Once we became aware of the issue, we lodged complaints with the Criminal Investigation Department and informed all relevant stakeholders. Investigations are currently underway both in Dubai and through the relevant law enforcement authorities connected to the supplier,” he said.