The government has unveiled a five-year corporate plan to revitalize SriLankan Airlines after shelving previous plans to sell the debt-laden national carrier.
As part of the initiative, three new aircraft have been added to the fleet, increasing its size to 25 by early this year, according to Sarath Ganegoda, the airline’s new chairman. He expressed confidence in the airline’s prospects under the new plan, which emphasizes operational efficiency, financial sustainability, and customer satisfaction.
The Auditor General’s latest report highlights the challenges ahead, noting that while the airline requires 27 aircraft to meet operational needs, it currently operates a fleet of 22 aircraft, of which only 18 were operational as of August 12, 2024.
Operational inefficiencies were also underscored in the report, which revealed that three aircraft had been grounded between October 2023 and August 2024, incurring lease rentals of Rs. 2,808.96 million during the period.
SriLankan Airlines has been brought under the Ministry of Finance, Planning, and Economic Development, as per a Gazette notification issued on November 25, 2025.
The previous government’s efforts to sell the airline to address its financial crisis faced opposition and were eventually abandoned. Instead, alternative development plans were explored but failed to materialize. Under the former administration, the International Finance Corporation (IFC) was mandated to provide advice on the divestiture of the airline. Requests for Qualifications (RFQs) were issued in October 2023 to attract investors, but the process progressed slowly and was ultimately discontinued.
To address the airline’s financial challenges, the then government transferred US $310 million in local loans guaranteed by the Treasury to its own accounts. Additionally, it allocated Rs. 5 billion as an equity contribution to help the airline overcome cash flow issues during the first four months of 2024.
Despite significant challenges, the airline has shown financial improvements, according to the Auditor General’s report for the 2023/24 fiscal year. SriLankan Airlines posted a profit after tax of Rs. 7,925.01 million for the year ending March 31, 2024, marking a stark contrast to the Rs. 71,306.66 million loss recorded in 2022/23.
However, the airline continues to grapple with massive accumulated losses, which stood at Rs. 592.63 billion as of March 31, 2024, down slightly from Rs. 599.61 billion the previous year. Total revenue for 2023/24 amounted to Rs. 333.6 billion, an 8.6% decline from Rs. 365.2 billion in 2022/23.
