Billions more in public funds flow into SriLankan Airlines as fresh share issues spark fears of backdoor privatization and mounting taxpayer burden.
Another storm is brewing over SriLankan Airlines as MP Dayasiri Jayasekara questions why billions of rupees from the Treasury continue to be injected into the national carrier. According to him, both previous administrations and the current government are sustaining the loss making airline with public funds to shield political reputation rather than pursue genuine reform.
He notes that beyond the Rs. 20 billion allocated last year, the government is now preparing to spend an additional Rs. 25 billion this year. Citing Board of Directors Report No. PB 67, he says there is a proposal to issue 25.2 billion shares at Rs. 100 each, with the government expected to purchase them. That would raise total public exposure to Rs. 45 billion within two years.
“This government came to power talking about ‘system change’. But what is happening today is the same old wrongdoings,” said Dayasiri Jayasekara.
He argues that no allocation for SriLankan Airlines appeared in the national budget presented by President Anura Kumara Dissanayake, meaning a supplementary estimate will be required. Jayasekara also questions whether losses are being covered to later sell profitable divisions such as Catering and Ground Handling to private investors, raising serious concerns over transparency, privatization strategy, and public finance management.
