Revenue Leakages and Commission Scandals at SriLankan Airlines 📈

A report from a senior manager highlights significant systemic revenue drains within the national carrier, primarily through irregular commission structures and outsourced processes. • Commission Irregularities: Since 2011–12, SriLankan Airlines has reportedly paid General Sales Agents (GSAs) commissions for online bookings at the point of boarding. This practice contradicts global industry standards where direct internet sales should bypass third-party payouts. • Financial Impact: In one instance, halting these payments in Saudi Arabia (2012–15) saved an estimated US$ 9,000–11,000 per month, suggesting substantial global losses. • Outsourced Refunds: Revenue leakage was further exacerbated by outsourcing refund processing to a firm in Bombay, with claims that 11% of fees were shared as kickbacks among internal senior management. • Governance Issues: The report alleges that GSA appointments in both passenger and cargo sectors were influenced by "cartels" and "kickback" schemes. While one beneficiary is reportedly imprisoned, other accomplices allegedly remain in key positions. • National Context: These internal "milking" practices are cited as primary obstacles to the Government's efforts to restructure the airline and ensure its financial viability. _Note: Summary based on reports from a Senior SriLankan Manager._