Colombo — SriLankan Airlines is facing turbulent skies once again, with a staggering 31 out of its 45 international routes running at a loss, according to Dr. Harsha de Silva, Chairman of the Parliamentary Committee on Public Finance.
In a statement revealing the airline’s financial performance for the first quarter of the year, Dr. de Silva confirmed that the national carrier suffered a Rs. 3.4 billion loss between January and March 2025. Despite a reduction in fuel costs, passenger revenue also declined, exacerbating the airline’s financial woes.
The airline’s debt burden continues to mount. SriLankan Airlines currently carries foreign liabilities amounting to USD 978 million, in addition to Rs. 51 billion in local debt. Notably, the carrier has also been forced to restructure bonds with interest arrears of around USD 200 million.
The loss-making trend across the majority of its global routes has intensified calls for urgent reform or privatization of the national carrier. With limited profitability, high operating costs, and mounting liabilities, the road to recovery appears long and uncertain for Sri Lanka’s flagship airline.
There seems to be absolutely no economic justification for continuing to hold on to state ownership of this white elephant. It should be wound up or sold off – which would be for a pittance given the debts.