Colombo (AsiaNews) – For some time now, the Civil Aviation Authority of Sri Lanka (CAASL) has been undergoing a radical leadership transition, accompanied by heightened repressive measures at the hands of Parliament and the Presidency. The aim of the crackdown promoted by senior officials is to tackle long-standing corruption and the numerous regulatory shortcomings within the state aviation sector. The decision to replace the agency’s entire senior management team should also be seen in this light, with a view to ensuring a new direction both in regulatory and commercial terms.
Since 1 September, amongst the changes implemented by the authorities – and marking a break with the chairmen appointed by the government led by the National People’s Power (NPP) immediately after taking office in 2024 – there has been a reshuffle of the top leadership positions across the three organisations: CAASL, AASL and SriLankan Airlines. Retired Colonel Ranjith Rajasinghe took up his post as the new CAASL chairman on 25 August, replacing the outgoing chairman, Sunil Jayarathna. At the same time, retired Admiral Kanchana Banagoda was appointed chairman of Airport and Aviation Services (Sri Lanka) Ltd (AASL) with effect from 1 September. Finally, Captain Daminda Rambukwella holds the post of Director-General and Chief Executive Officer of Civil Aviation.
Analysts highlight the ruling NPP party’s desire for change, as it has sought to replace the leadership of the country’s three main aviation organisations following their relatively recent initial appointments. The management team originally appointed to oversee the Civil Aviation Regulatory Authority (CAASL), along with those of Airport & Aviation Services (Sri Lanka) (Private) Limited (AASL) and SriLankan Airlines, the national carrier, have been dismissed and replaced. Experts confirm this is “a significant change” in governance.
Senaka Mannaperuma and Vihangi Alwis, industry analysts, explain to AsiaNews that “the regulatory body, along with its state-backed counterparts, is facing numerous critical investigations into embezzlement and major administrative restructuring”. At present, they continue, “the aviation sector is under investigation by Parliament’s Committee on Public Enterprises (COPE) and the Commission to Investigate Allegations of Corruption (CIABOC)”. Furthermore, on 24 August, a multi-sectoral team comprising CAASL, Sri Lankan customs authorities and airport authorities revisited the idea of implementing the Air Cargo Community System (ACCS) project. This, the experts state, consists of a “technology-based process aimed at eliminating manual documentation, including corruption or manipulation by intermediaries”.
According to senior officials, COPE has recently “officially referred 23 cases of corruption involving CAASL and seven other state institutions to the CIABOC, calling for criminal investigations to be carried out with the utmost urgency. CAASL is currently facing serious financial difficulties as six airlines are in arrears with approximately €72.5 million in boarding fees owed to the authority”. And the national carrier, SriLankan Airlines, alone must settle at least 64 million. Due to these problems, the CAASL is grappling with regulatory loopholes in the Aviation Act and is unable to actively pursue recovery of the shortfall. Hence, the officials conclude, the government’s decision to issue an “emergency decree to rewrite the law”.
According to senior academics Chandima Wijerathna and Senarath Kariyawasam, “the aviation sector is particularly sensitive to leadership instability. International aviation bodies, airlines and investors attach great importance to continuity, regulatory clarity and institutional credibility. Therefore, abrupt changes at the top without clear reform programmes can send mixed signals regarding the stability of governance. The main concern is not ‘whether the Minister for Ports and Civil Aviation, Anura Karunathilaka, has the authority to remove the chairman, but whether such a removal – they argue – is in line with a coherent reform strategy’.
If the AASL is undergoing restructuring, stakeholders deserve to know its scope: does it involve cost rationalisation? A management overhaul? A realignment of policies with national aviation objectives? “Until these questions are adequately addressed, the call for restructuring will remain unfounded. In the absence of a plan, the change in leadership appears to be an isolated incident rather than part of a systemic overhaul”. “Ultimately, the controversy surrounding the removal of senior aviation officials reflects a deeper governance challenge: the way in which public institutions justify decisions involving the exercise of power in an era where accountability demands more than mere assurances. Therefore, without clarity, the risks of restructuring – as Chandima Wijerathna and Senarath Kariyawasam conclude – are not perceived as reforms, but rather as uncertainty.”
