SriLankan Airlines’ Rs. 528 billion losses put Treasury support under scrutiny

By The Pulseline News Desk

President Anura Kumara Dissanayake has questioned how long the Treasury can continue to shoulder the financial burden of SriLankan Airlines, revealing that the national carrier has accumulated losses amounting to Rs. 528 billion.

Presenting the 2027 Budget in Parliament today (12), the President said the Government had appointed a special committee to examine the airline’s substantial financial losses and recommend possible solutions to address its continuing financial difficulties.

He said the committee’s report would be submitted to Parliament, adding that the Government needed to take a fresh look at the future of the national carrier in light of its growing burden on public finances.

“We need to seriously consider whether the Treasury can continue to bear the burden of SriLankan Airlines. The airline’s loss stands at Rs. 528 billion,” the President said.

the President said the losses followed the decision by former President Mahinda Rajapaksa to end the partnership, allegedly over a personal issue.

The Emirates management agreement ended in March 2008, after a 10-year partnership, with the Sri Lankan Government taking over the management of the national carrier.

The disclosure places the future of the state-owned airline among the key issues facing the Government as it seeks to manage public expenditure, improve the performance of state-owned enterprises and reduce the financial pressure on the Treasury.

SriLankan Airlines has remained a significant financial concern for successive governments, with its accumulated losses and financing requirements placing pressure on public resources.

The committee’s findings are expected to provide the basis for further discussions on the airline’s financial restructuring and the Government’s approach to its future ownership and operations.

The President’s remarks suggest that the Government is reviewing the sustainability of continued Treasury support, although he did not announce a specific decision on privatisation or a change in the airline’s ownership structure.