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Investigation into alleged irregularities in the 2006 MiG aircraft procurement

Last verified 16 September 2026
Recent development: Gotabaya Rajapaksa gives FCID statement over 2006 MiG aircraft procurement

Current status of the Investigation into alleged irregularities in the 2006 MiG aircraft procurement

INVESTIGATION

The Financial Crimes Investigation Division (FCID) is investigating allegations that state funds paid for the 2006 purchase and refurbishment of MiG-27 aircraft for the Sri Lanka Air Force were routed through Bellimissa Holdings, a British Virgin Islands company named in the transaction as the 'designated party', rather than paid in full to the Ukrainian state supplier Ukrinmash. FCID reporting from 2018 put the underlying Ukrainian-side agreements at US$7.833 million against US$15.665 million paid to Bellimissa, and calculated a resulting state loss of US$6.831 million; a 2020 Fort Magistrate's Court hearing separately described the apparent loss, in rounded terms, as about US$7 million. Rajapaksa was Secretary to the Ministry of Defence when the procurement occurred; he was first questioned by the FCID over the deal on 20 May 2015 and gave a further statement on 11 September 2026. No arrest, charge, or indictment against him has been reported. The FCID's central suspect, former Ambassador Udayanga Weeratunga, has been under investigation since 2016 and was arrested, remanded, and later released on bail in 2020; the case against him remains active before the Colombo Fort Magistrate's Court, most recently referred to the Attorney General for advice. See the Case Story tab for the full financial trail and Weeratunga's procedural history.

What’s happened

On 2 September 2026, the Colombo Fort Magistrate's Court recalled the case for 6 January 2027 after investigators said the matter had been referred to the Attorney General for advice; Weeratunga's foreign travel ban was temporarily lifted until that date. That hearing followed an earlier one on 13 May 2026, at which the CID told the court three rounds of discussions had taken place with the AG. In the same week as Rajapaksa's 11 September 2026 statement, former Air Force Commanders Roshan Goonetileke (10 September, over five hours) and Donald Perera (15 September, nearly six hours) also recorded FCID statements. In December 2024, the US State Department designated Weeratunga and his immediate family under Section 7031(c) for corruption connected to the MiG procurement — an administrative visa sanction, not a Sri Lankan criminal conviction. None of the alleged loss figures below has been established by a final court judgment against Rajapaksa or anyone else.

Court
Colombo Fort Magistrate's Court
Next hearing / due
6 January 2027
Sources (12)

How a 2006 MiG-27 jet deal became a two-decade corruption investigation

Sri Lanka's air force paid nearly US$15.7 million for four MiG-27 fighters and an overhaul package, routed through a British Virgin Islands company that investigators say did not operate from the London address on its own paperwork. Twenty years on, the case is still open — and the public record has never fully reconciled its own numbers on how much the country actually lost.

Sri Lanka Air Force → Bellimissa Holdings (BVI) → D.S. Alliance (Singapore) → Ukrinmash (Ukraine), with Udayanga Weeratunga alleged to be the controlling hand

Status
Investigation ongoing — case before Attorney General for advice
Next hearing
6 January 2027 (Colombo Fort Magistrate's Court)
2006 procurement package
US$14.676m (4 aircraft + overhauls + transport)
Paid to Bellimissa Holdings
US$15,665,437.24 (FCID, 2018)
Reached Ukrinmash (underlying deals)
US$7,833,000 (FCID, 2018)
FCID's alleged state loss
US$6,831,344.24 — described by a 2020 Fort Magistrate, in rounded terms, as 'about US$7 million'

Story last verified 16 September 2026.

What it cost Sri Lanka

Public reporting on the MiG-27 deal contains at least four different loss figures, produced at different points over two decades by different investigators and courts. Nadu records each as reported, with its own source, rather than picking one as definitive — no Sri Lankan court has yet issued a final judgment establishing the loss.

Cash actually paid

US$14.68m

Total 2006 procurement package (4 aircraft + overhauls + transport)

FCID reporting breaks this down as US$9.848 million for four MiG-27 aircraft, US$4.128 million to overhaul three existing MiG-27s and one MiG-23 UB trainer, and US$700,000 for transport.

Cash actually paid

US$15.67m

Paid by SLAF to Bellimissa Holdings under agreement SLAF/2006/07/AIR

The total FCID documentation said was actually paid to Bellimissa Holdings, the company named as the 2006 agreement's designated payment recipient.

Claim / estimate

US$7.83m

Underlying D.S. Alliance-Ukrinmash agreements

The total value of the agreements FCID says actually covered the aircraft and overhaul work between D.S. Alliance Pte Ltd and Ukraine's Ukrinmash — well short of what SLAF paid to Bellimissa Holdings for the same procurement.

Claim / estimate

US$6.83m

FCID's alleged state loss (2018 finding)

The exact loss figure FCID investigators calculated and reported in 2018. It does not arithmetically reconcile with the roughly US$7.832 million gap between the US$15.665 million paid to Bellimissa and the US$7.833 million that reached Ukrinmash — public reporting has never explained the difference, and Nadu records it as an open discrepancy rather than resolving it.

Claim / estimate

US$7.00m

Apparent loss described by a Fort Magistrate (2020)

In 2020 bail proceedings, a Fort Magistrate said the government had paid about US$14 million, of which only about US$7 million had reached the Ukrainian side, describing the apparent loss in rounded terms as about US$7 million.

Sources (3)

How the scheme worked

The 2006 deal

In 2006, the Sri Lanka Air Force signed agreement SLAF/2006/07/AIR for four MiG-27 fighter aircraft, the overhaul of three existing MiG-27s and one MiG-23 UB trainer, and transport — a package FCID reporting later broke down as US$9.848 million for the aircraft, US$4.128 million for the overhauls and US$700,000 for transport, roughly US$14.676 million in total. The deal was presented as government-to-government with Ukraine, but the agreement itself named Bellimissa Holdings Ltd., a British Virgin Islands company, as the 'designated party' to actually receive Sri Lanka's payments.

Where the money actually went

FCID investigators reported that SLAF paid US$15,665,437.24 to Bellimissa Holdings — but that Bellimissa did not operate from the London address on its own paperwork, and that a Singapore company, D.S. Alliance Pte Ltd, was the real intermediary. D.S. Alliance's own agreements with Ukraine's Ukrinmash — the actual supplier — totalled only US$7,833,000. FCID's 2018 reporting calculated the resulting state loss at US$6,831,344.24. Nadu notes, without resolving it, that this figure does not arithmetically match the roughly US$7.832 million gap between what was paid to Bellimissa and what reached Ukrinmash — no source located explains the difference. Separately, in 2020 court proceedings a Fort Magistrate described the apparent loss, in rounded terms, as about US$7 million, after finding that of roughly US$14 million paid, only about US$7 million had reached the Ukrainian side.

Early scrutiny, and a separate defamation case

Sunday Leader reporting on the deal in 2007 prompted Opposition pressure in Parliament, and the government of the day was reported to have pledged a Parliamentary Select Committee to examine it — though available reporting does not confirm the committee was ever actually constituted. A separate civil defamation case, over the same 2007 newspaper articles, ended in March 2015 when the Sunday Leader tendered an unconditional apology to Gotabaya Rajapaksa — a civil settlement over the reporting itself, which did not adjudicate the later criminal misappropriation allegations. Rajapaksa was first questioned by the FCID over the MiG deal on 20 May 2015.

Udayanga Weeratunga's arrest and bail

An Interpol arrest warrant was issued for Weeratunga in October 2016. He was intercepted in the UAE in February 2018 while travelling on a blacklisted passport, and was extradited to Sri Lanka, arrested and remanded by the Fort Magistrate's Court on 14 February 2020. He was released on bail in April 2020 — Rs. 2.5 million cash bail, two Rs. 50 million sureties, and a travel restriction — and gave further CID statements in August 2022 and, with his wife, in August 2025 over a separate financial transaction reportedly linked to the case.

US sanctions, December 2024

In December 2024, the US State Department designated Weeratunga and his immediate family under Section 7031(c), stating he orchestrated and personally benefited from a corrupt scheme connected to the MiG procurement. This is a US administrative visa-ineligibility action, not a Sri Lankan criminal conviction, and does not by itself resolve the domestic case.

The case reactivates, 2026

At a 13 May 2026 hearing, the CID told the Fort Magistrate's Court that three rounds of discussions had taken place with the Attorney General; the matter was adjourned to 2 September 2026. On that date, the court recalled the case for 6 January 2027, again citing the AG referral, and temporarily lifted Weeratunga's foreign travel ban until then. In the same period, the FCID recorded fresh statements from former Air Force Commanders Roshan Goonetileke (10 September) and Donald Perera (15 September), and from Gotabaya Rajapaksa himself (11 September) — none of whom has been arrested, charged, or indicted as a result.

The money trail

Every reported money movement in this case, in one place — expand a source list to see where each one is reported.

People involved

Former Ambassador to Russia/Ukraine; central suspect

Udayanga Weeratunga

A cousin of the Rajapaksa family who, as Ambassador, took a personal role in Sri Lanka's military procurement from Ukraine, including the MiG-27 deal. An arrest warrant was issued via Interpol in October 2016; he was intercepted in the UAE in February 2018 while attempting to travel to the US on a blacklisted passport; and he was extradited, arrested and remanded on his return to Sri Lanka in February 2020, before being released on bail in April 2020 on cash bail of Rs. 2.5 million and two Rs. 50 million sureties, with a travel restriction. He gave further CID statements in August 2022 and, with his wife, in August 2025 over a related financial transaction. In December 2024 the US State Department designated him and his immediate family under Section 7031(c) for corruption connected to the MiG procurement — an administrative visa sanction, not a Sri Lankan criminal conviction. His case remains active before the Colombo Fort Magistrate's Court, most recently recalled for 6 January 2027 after referral to the Attorney General.

Connections

Sources (8)
Gotabaya Rajapaksa

Secretary to the Ministry of Defence during the procurement

Gotabaya Rajapaksa

Sri Lanka's most senior defence official when the 2006 deal was signed. He was first questioned by the FCID over the MiG deal on 20 May 2015 and gave a further statement on 11 September 2026, after the investigation's renewed activity that month. He has not been named a suspect, arrested, charged, or indicted in the matter, and is not a party to the active Fort Magistrate's Court proceeding, which concerns Weeratunga.

View full profile

Connections

Sources (2)

Former Air Force Commander

Roshan Goonetileke

Recorded a statement to the FCID on 10 September 2026 lasting more than five hours, as part of the renewed investigation. Not reported arrested or charged.

Connections

Sources (1)

Former Air Force Commander

Donald Perera

Recorded a statement to the FCID on 15 September 2026 lasting nearly six hours, as part of the renewed investigation. Not reported arrested or charged.

Connections

Sources (1)

Companies & institutions involved

Procuring service

Sri Lanka Air Force (SLAF)

In 2006 SLAF signed agreement SLAF/2006/07/AIR for four MiG-27 fighter aircraft, the overhaul of three existing MiG-27s and one MiG-23 UB trainer, and transport — represented as a government-to-government deal with Ukraine's state defence exporter. FCID investigators later reported that the payments due under it were routed to Bellimissa Holdings rather than paid in full to the actual Ukrainian supplier.

Connections

Sources (1)

Designated payment recipient (British Virgin Islands)

Bellimissa Holdings Ltd.

Named in the 2006 agreement as the 'designated party' to receive Sri Lanka's payments for the MiG-27 deal. FCID investigators reported that Bellimissa was incorporated in the British Virgin Islands and did not operate from the London address given in the transaction documents — reporting has described it as effectively a shell company through which the payment was diverted.

Connections

Sources (3)

Singapore intermediary

D.S. Alliance Pte Ltd

A Singapore-registered company FCID identified as the actual intermediary behind the transaction. Its own agreements with Ukraine's Ukrinmash totalled US$7,833,000 — well short of the US$15,665,437.24 that SLAF paid to Bellimissa Holdings under the same procurement, a gap central to the investigation's misappropriation allegation.

Connections

  • Bellimissa Holdings Ltd. linked to D.S. Alliance Pte Ltd— FCID identified D.S. Alliance as the actual intermediary
  • paid Ukrinmash— US$7,833,000 — underlying agreements
Sources (1)

Ukrainian state defence-export supplier

Ukrinmash

Ukraine's state arms-export entity, the actual supplier of the MiG-27 aircraft, overhaul work and associated services. FCID reporting says the D.S. Alliance-Ukrinmash agreements — the underlying commercial arrangement for the aircraft themselves — totalled US$7,833,000.

Connections

Sources (1)

Lead investigator

Financial Crimes Investigation Division (FCID)

The police unit that has investigated the MiG-27 procurement since at least 2016, produced the 2018 findings on the Bellimissa/D.S. Alliance/Ukrinmash payment chain, and has recorded fresh statements from Weeratunga, Rajapaksa, Goonetileke and Perera during 2025-2026.

Connections

  • Udayanga Weeratunga investigated by Financial Crimes Investigation Division (FCID)— Arrested 14 Feb 2020; case before Colombo Fort Magistrate's Court
  • Gotabaya Rajapaksa investigated by Financial Crimes Investigation Division (FCID)— Questioned 20 May 2015 and 11 Sep 2026; not arrested, charged, or indicted
  • Roshan Goonetileke investigated by Financial Crimes Investigation Division (FCID)— Questioned 10 Sep 2026 (5+ hours)
  • Donald Perera investigated by Financial Crimes Investigation Division (FCID)— Questioned 15 Sep 2026 (~6 hours)
Sources (5)

Foreign sanctioning authority

US Department of State

In December 2024, designated Udayanga Weeratunga and his immediate family under Section 7031(c) of the US Foreign Relations Authorization Act, citing corruption connected to the MiG-27 procurement. This is an administrative visa-ineligibility designation, not a criminal charge or conviction, and does not itself establish guilt in the Sri Lankan proceeding.

Connections

  • Udayanga Weeratunga linked to US Department of State— Designated under Section 7031(c), 9 Dec 2024 — administrative sanction, not a criminal conviction
Sources (1)