SriLankan Airlines has requested an additional Rs. 10 billion to continue operations as the Government moves ahead with plans to introduce a public-private partnership (PPP) model for the national carrier.

Speaking during a televised discussion, Aviation Minister Anura Kuranathilake said maintaining the airline entirely through taxpayer funds was becoming increasingly unsustainable.

According to the Minister, the Government is expected to provide nearly Rs. 90 billion in financial support to the airline up to 2030, at an estimated cost of around Rs. 30 billion annually.

He stated that the Government has now decided to pursue a PPP model and is currently preparing investment proposals to attract private investors for the airline.

The Minister said a separate institution would oversee the investor selection process and expressed confidence that investments could be secured within this year.

However, he clarified that the Government does not intend to fully privatise SriLankan Airlines, stressing that some level of State involvement remains important for national emergencies.

As examples, he pointed to the airline’s role in repatriating Sri Lankan students from China during the COVID-19 pandemic and arranging special flights for Sri Lankan schoolchildren stranded in India following an accident.

The Government hopes to retain State assets within the airline while bringing in private investment through a joint partnership structure, the Minister added.