Namal Rajapaksa held for two weeks in Airbus probe

Sri Lankan lawmaker Namal Rajapaksa, the son of former president Mahinda Rajapaksa, was ordered held for two weeks on Friday after anti-graft authorities accused him of receiving $800,000 linked to a 2013 Airbus aircraft deal.

Colombo Chief Magistrate Asanga Bodaragama ordered the 40-year-old lawmaker detained pending further investigations. Rajapaksa's lawyer, Nishantha Dayananda, sought bail, but the request was denied.

The Commission to Investigate Allegations of Bribery or Corruption arrested Rajapaksa after questioning him over the $2.3 billion Airbus transaction. The commission told court that Rajapaksa had received $800,000, part of money allegedly paid by the European aircraft manufacturer to Sri Lankan politicians and officials to secure the deal.

The commission also told court that a Sri Lankan businessman arranged the transfer of cash to Rajapaksa through two Singapore bank accounts.

The Airbus purchase was cancelled by a new government in 2016. The anti-graft probe centres on claims that the European manufacturer channelled part of the purchase money to senior Sri Lankan officials and politicians.

The commission questioned Mahinda Rajapaksa in May over allegations that he also received kickbacks from the aircraft purchase. The Rajapaksa family has denied receiving bribes and has dismissed corruption claims against it as politically motivated.

Kapila Chandrasena, a former SriLankan Airlines chief executive, told investigators in March that he had handed nearly half a million dollars in kickbacks to the senior Rajapaksa, according to court submissions. He later retracted the statement, saying it had been made under pressure.

Chandrasena was found dead at a relative's home in May, shortly before he was due to be rearrested. The cause of death has not been established.

A joint investigation by US, British and French authorities previously found that Airbus had agreed to pay about $16 million in bribes in Sri Lanka, with $1.7 million routed to Chandrasena before the scandal was uncovered. The payments were linked to the purchase of 10 Airbus aircraft, which required cabinet approval during Mahinda Rajapaksa's 2005-2015 presidency.

SriLankan Airlines has accumulated losses estimated at nearly $2 billion, and repeated attempts to privatise the flag carrier have failed.