Serious allegations have been made over the tendering of commercial premises at Bandaranaike International Airport (BIA), with claims that national procurement guidelines and financial regulations were breached and that the state could lose tens of millions of rupees in revenue.
The allegations concern the Commercial and Properties division of Airport and Aviation Services (Sri Lanka) (AASL), with senior officials in the division alleged to have been involved in the disputed transactions. The matters have reportedly been formally brought to the attention of the minister responsible for the subject and the ministry secretary.
One of the main cases involves commercial unit No. 60-D. According to the allegations, the highest bidder in the tender was removed from consideration without a reasonable explanation or formal notification of a final determination, despite claims that commercial leasing procedures should select the highest bid where this produces the maximum revenue for the state.
The premises were instead reportedly being prepared for award to the lowest bidder. The source estimates that the resulting loss of revenue to the state and AASL could exceed Rs48 million. The unit is currently closed, meaning that daily rental income that could otherwise have been generated is also being lost.
A second case concerns commercial unit No. 58-D, where the tender process reportedly ended in October 2025. Allegations have been made that the tender conditions were deliberately restricted to a quick-service restaurant (QSR) model, preventing wider competition from external parties.
The premises were conditionally awarded to a bidder in April 2026. However, according to the source, the bidder has so far been unable to provide the required brand authorisation permitting operations under the relevant brand at BIA. The unit has consequently remained closed for months, resulting in the loss of monthly rental income.
The source also raises questions over a substantial difference between the rental income that could have been obtained from the premises and the amount reportedly being considered for the award. It states that a property capable of generating monthly rent of about Rs5.3 million was being offered for approximately Rs1.5 million.
The allegations specifically refer to the involvement of Nirosha Ihalagedara, Manager – Commercial and Properties, and the direction of Dr Sumith, Head of Commercial & Properties. Airport sources cited in the report question why a premises capable of generating substantially higher monthly revenue would be offered at the lower figure.
The source further alleges that an attempt was being made to provide the opportunity to an entity belonging to the Softlogic Group, associated with former SriLankan Airlines chairman Ashok Pathirage. It questions whether any personal interest or benefit was involved, but provides no independent evidence establishing such a motive.
The allegations have prompted calls for an immediate procurement audit covering the tendering of commercial premises at the airport. Trade unions and other relevant parties are calling on the government to investigate claims that tender procedures and transparency requirements were disregarded, potentially resulting in state-owned commercial space being left unused while lower-value arrangements were pursued.
The source characterises the allegations as part of wider concerns over the allocation of commercial units at Katunayake airport and calls for those responsible to face legal action if wrongdoing is established.
