SriLankan Airlines faces PPP restructuring as government says taxpayer funding is unsustainable and new investors are being sought.
SriLankan Airlines is set for restructuring under a Public-Private Partnership model as the government seeks investors to reduce the burden on taxpayers.
Minister of Aviation Anura Kumarathilaka said the government is planning to restructure the national carrier and bring it under a PPP model.
Speaking during a television discussion, the Minister said continuing to maintain the airline using taxpayers’ money has become completely unsustainable and difficult.
He revealed that the government has already had to provide a major financial contribution to keep the airline’s operations running.
According to the Minister, it is estimated that Rs. 90 billion, approximately US$ 300 million, would need to be allocated for this purpose until 2030.
That would amount to Rs. 30 billion per year.
In addition, SriLankan Airlines has requested another Rs. 10 billion in provisions from the government to maintain its daily operations.
“This system cannot be continued forever. It is unfair that even ordinary people who have never even seen an aircraft with their own eyes contribute through their taxes to maintain this airline,” the Minister said.
For this reason, the government has firmly decided to move toward a Public-Private Partnership model.
Investment proposals are now being prepared, while steps are being taken to invite investors.
An official institution is also expected to be appointed to oversee the investment process.
The Minister expressed confidence that the required investments could be secured within this year, 2026.
However, he clarified that the government does not intend to completely privatise the airline.
He said some level of state involvement in the national airline is essential during emergencies and for national needs.
“We believe that there should be at least some level of government involvement in the national airline to intervene on behalf of the country in an emergency,” the Minister stated.
Accordingly, the government hopes to attract private investment through a joint partnership structure while preserving the airline’s existing state assets.
