SriLankan Airlines restructuring; Government uncertain on path ahead

Colombo, April 8 (Daily Mirror) - Despite having a principled position that SriLankan Airlines, the national carrier, should be revitalized, the government still remains undecided whether it should involve the private sector or retain sole authority, according to Ports and Aviation Minister Anura Karunatilake.

The restructuring of state-owned enterprises (SOEs) is a core pillar of the International Monetary Fund (IMF) Extended Fund Facility (EFF) programme for Sri Lanka. It is designed to address fiscal risks and restore long-term debt sustainability.

The government, in its 2026 Governance Action Plan, has scheduled SOE reform for 2026. The Public Commercial Business Management Bill is expected to be drafted and submitted for Cabinet approval this month.

Asked about plans for the national carrier, the Minister told the Daily Mirror that the government had prioritized the appointment of a Chief Executive Officer for the airline at the moment. He said the government had not yet decided how it should be restructured—whether by entering into a partnership with the private sector or adopting an international management model.

SriLankan Airlines and the government recently announced the successful completion of the consent solicitation, exchange and tender offer tied to the airline’s US$175 million government-guaranteed bonds that matured in June 2024, drawing participation exceeding 99 percent of outstanding holders.

Meanwhile, Mr. Sarath Ganegoda, Chairman of SriLankan Airlines Limited and SriLankan Catering Limited, also tendered his resignation from both boards with effect from March 31, 2026.

The national carrier reported a loss of Rs. 2.7 billion in 2024/25, compared to a profit of Rs. 7.9 billion in 2023/24.

However, the airline said the variance was primarily due to a reduced exchange gain of Rs. 3.9 billion in 2024/25, compared with the previous year’s exchange gain of Rs. 26 billion.