SriLankan Airlines is currently undergoing a critical leadership transition as it prepares to appoint a new chairman and chief executive officer, sparking an intense internal debate over the airline’s future direction.

Amid ongoing financial challenges, senior management is reportedly lobbying for the appointment of a candidate from within their own ranks or from a circle of former executives, including former CEO Peter Hill. However, a former senior staff member has warned that this push is aimed at preserving the status quo and concealing years of systemic corruption.

The former official has urged the government to resist such pressure and instead appoint an independent external leader with no ties to the current administration. The insider also criticized the exclusion of several applicants from the selection process, arguing that the airline already has a strong internal knowledge base, with hundreds of highly educated managers capable of supporting a capable leader.

To support this view, the former executive cited the late Harry Jayawardena, who successfully led the airline as chairman despite not having a traditional aviation background, demonstrating that strong business leadership can drive a successful turnaround.

A key part of the proposed reform involves addressing serious allegations of corruption, particularly within the airline’s commercial division. The insider claims that up to 90 percent of the airline’s operational and financial issues originate from this unit, which is accused of functioning like a cartel and causing major revenue losses through questionable dealings with travel agents.

These practices reportedly include commission-based arrangements and kickbacks that significantly reduce airline revenue, with commissions typically ranging between three and six percent. Additionally, irregularities in digital ticket sales have been highlighted, with claims that commissions are being paid even on direct online bookings—contrary to global industry norms—further weakening the airline’s e-commerce performance.

The airline is also said to have abandoned the “lowest fare guarantee,” allowing intermediaries to manipulate pricing and divert revenue away from direct sales channels.

Financially, the situation remains severe, with the airline recording a loss of Rs. 2.73 billion for the 2024/25 financial year, despite a global recovery in air travel. While regional competitors have reported profits, SriLankan Airlines has struggled, partly due to past strategic decisions, including aircraft sales during the Emirates management era.

Beyond financial concerns, the insider pointed to deep-rooted cultural issues within the organization, including limited career progression, a hostile environment for emerging talent, and a nepotistic system of succession that undermines merit-based advancement.

Despite these challenges, the former official expressed confidence that with the right leadership, transparency, and reforms, SriLankan Airlines can still recover and regain its position as a strong national carrier.