SriLankan Airlines has issued a clarification regarding two separate financial incidents involving an alleged fraudulent payment in the United Arab Emirates and the suspected misappropriation of funds at its Chennai office in India.

In a statement released on Saturday, the airline said a Dubai-based service provider informed the company that a payment worth AED 974,000 had not been received. Investigations later revealed that the service provider’s email account had allegedly been compromised by a third party.

According to the airline, the fraudsters had altered bank account details and sent supporting documents through official communication channels, misleading SriLankan Airlines into believing it was dealing directly with the legitimate service provider.

The airline stated that immediate steps were taken to stop further payments to the disputed account, while complaints were lodged with authorities in the UAE and Sri Lanka’s Criminal Investigation Department. Investigations are currently underway in both countries.

SriLankan Airlines said the payment had been processed based on email instructions and documentation carrying authorised signatures, which were later discovered to have originated fraudulently through the compromised email account. The airline also maintained that it was not responsible for the service provider’s failure to receive the funds, stating that the breach occurred within the provider’s own email system.

Meanwhile, the airline also addressed allegations of financial fraud at its Chennai office in India, where several finance department employees are accused of misappropriating approximately INR 22 million over a period of time.

According to the airline, the employees allegedly manipulated invoices, payment information, and signatures to carry out the fraud. The suspicious transactions were identified by the airline’s Head Office in Colombo, triggering an internal investigation.

SriLankan Airlines said the employees involved subsequently stopped reporting to work, and disciplinary as well as legal action has been initiated against them.

The airline added that the matter has been referred to Indian law enforcement authorities and investigations are continuing while efforts are being made to recover the losses.