The Government has identified transforming SriLankan Airlines into a profitable and accountable enterprise as a key priority, Deputy Minister of Civil Aviation Janitha Ruwan Kodithuwakku said.
The Deputy Minister made the remarks during a meeting with newly appointed Acting Chief Executive Officer of SriLankan Airlines Vipul Misra, where discussions focused on the future of the national carrier and the need for urgent reforms.
Kodithuwakku stressed that SriLankan Airlines is a vital national asset but could no longer be sustained on its current path of continued financial losses. He said a strategic overhaul was necessary, with the Government and the new management working together to address the airline's longstanding challenges.
The discussions also focused on restructuring the airline, improving operational efficiency and restoring public confidence. The Deputy Minister assured the new management of the Government's political support to implement the required reforms.
He emphasised that transparency and professionalism should be central to the restructuring process, noting that the airline, which is supported by public funds, must operate with greater accountability to the public.
SriLankan Airlines recorded a net loss of Rs. 2.73 billion for the financial year ending March 31, 2025, after reporting a profit in the previous financial year. Its accumulated losses have meanwhile risen to nearly Rs. 340 billion.
The airline's financial difficulties have also been aggravated by net finance charges of around Rs. 31.6 billion and unexpected operational expenses, including Rs. 2.2 billion spent on unscheduled engine repairs.
The restructuring process will also have to address the airline's significant debt obligations, including negotiations relating to US$211.57 million in Sovereign Guaranteed International Bonds.
Previous efforts to stabilize the national carrier have been affected by capacity constraints, the country's wider economic crisis and legal challenges involving bondholders.
The Government-appointed expert committee is expected to guide the strategic review and structural reforms as authorities seek to place SriLankan Airlines on a more financially sustainable footing.
