SriLankan Airlines, currently seeking a strategic partner to either manage or invest in the debt-ridden national carrier, received a capital infusion of Rs. 25.2 billion from the Government in December 2025.
The airline has also called for applications to appoint a new Chief Executive Officer (CEO) following the resignation of CEO Richard Nuttall at the end of April 2025. Nuttall stepped down to assume duties as President of Philippine Airlines.
In a statement issued last week announcing an Extraordinary General Meeting (EGM) of shareholders scheduled for March 5 at the BMICH in Colombo, the airline confirmed that the restructuring of its state bank debt was successfully completed in December.
According to the statement, the company received the first tranche of capital under the restructuring package on December 29 and 30. This amount included the initial instalment under a five-year biannual repayment plan, along with an upfront settlement of the interest differential, totalling Rs. 25.2 billion. The funds were credited directly to the airline’s bank account and were fully utilised to settle the outstanding state bank debt.
The upcoming special shareholders’ meeting aims to increase the stated capital of the company to facilitate the allocation of shares equivalent to the value of the latest government capital infusion.
In its most recent financial results, the group — comprising the airline and its catering subsidiary — reported a loss of Rs. 2.7 billion for the financial year ended March 31, 2025, compared to a profit of Rs. 8 billion recorded in the previous year. Group revenue declined to Rs. 303 billion from Rs. 339 billion during the corresponding period.
The Government currently holds a 99.78 per cent stake in the airline, while the Employees’ Provident Fund (EPF) holds 0.09 per cent and other shareholders account for 0.13 per cent.
The total number of issued shares, presently 2,086,492,255, will increase to 2,338,732,571. The additional shares will be distributed proportionately among shareholders, subject to their decision to subscribe.
The Board of Directors has resolved that shares allocated to the Government will be issued at a par value of Rs. 100 per share. The Board further stated that, in its opinion, the consideration is fair and reasonable to the company as well as to all existing shareholders.
