Sri Lanka to overhaul national airline

President Anura Kumara Dissanayake vowed to overhaul the country’s national airline after the government failed to find a buyer.

Successive administrations have sought to sell SriLankan Airlines, which has been burdening the state budget, but Dissanayake told parliament there had been “no takers” despite sustained efforts to attract a foreign buyer.

The carrier, with accumulated losses nearing $2 billion by the end of March 2025, still has an outstanding $175 million sovereign-guaranteed bond awaiting rescheduling.

Dissanayake said the process was expected to be completed by year’s end.

“We will also restructure the management of SriLankan Airlines early next year,” Dissanayake told parliament while unveiling the 2026 budget.

He said the management has been asked to formulate a credible business plan to salvage the carrier.

“Should the taxpayers carry the huge burden of SriLankan Airlines?” he asked, warning that if the reforms failed “alternative action” would follow. (AFP)