The government has yet to finalize a concrete plan for restructuring SriLankan Airlines, although it remains open to exploring private-sector partnerships to improve the airline’s profitability, an official said yesterday.
According to its latest annual report, SriLankan Airlines recorded a loss of Rs. 2.73 billion for the financial year ending March 31, 2025 — a sharp reversal from the Rs. 7.9 billion profit reported the previous year, marking a decline of about 134.6 percent.
Total revenue fell by 10.8 percent to Rs. 303 billion, largely due to lower passenger earnings and foreign exchange fluctuations. Although operating expenses dropped by 11.7 percent to Rs. 276.3 billion, the cost reductions were insufficient to offset the fall in income.
When asked about possible measures in the upcoming national budget to revitalise the airline, Chairman Sarath Ganegoda said there may be some initiatives, but he could not comment on behalf of the government.
Responding to questions about potential private-sector collaboration, Ganegoda said, “We remain open to such a partnership to increase profitability.”
Under its IMF programme, the government is required to reform state-owned enterprises. The previous administration had initiated a restructuring process for SriLankan Airlines, but it was eventually abandoned after no private investors came forward.
The current government has since introduced limited budgetary measures to help ease the airline’s debt burden.
