COLOMBO, Nov. 25 -- A controversial aircraft procurement deal involving Airbus a decade ago has cost SriLankan Airlines an estimated US$ 400 million, Ports, Shipping and Civil Aviation Minister Anura Karunathilaka revealed this week, underscoring the long-term financial damage caused by corruption and mismanagement at the national carrier.

Speaking on the losses incurred between 2013 and 2014, the Minister said SriLankan Airlines had entered into agreements to purchase A350 and A330 aircraft directly from Airbus as well as through leasing companies. None of the A350 orders materialized, with the airline later cancelling the contracts.

"We had to pay 115 million US dollars as penalties for cancelling contracts due to not having proper ne...