The Sri Lankan government has unveiled a comprehensive plan to settle SriLankan Airlines’ legacy debt.
SLA, a major player in the air transportation of passengers and cargo, has faced numerous challenges in past attempts by various governments to privatize the airline and attract private investment.
To address these challenges, the government will sign an agreement with the relevant banks and allocate Rs. 10,000 million for loan capital repayment in 2025, along with another Rs. 10,000 million for interest payments.
This initiative aims to alleviate the airline’s debt burden.
Once these legacy debt service costs are settled, SLA will be solely responsible for managing its financial health.
To aid in this transition, the airline is creating a new medium-term strategic plan.
The government has proposed a total allocation of Rs. 20,000 million for this purpose in the 2025 Budget.
This was announced by President Anura Kumara Dissanayake during his 2025 Budget speech in Parliament on Monday (17th).
