• Decision on restructuring model within 2–3 months
• Cash flow strain linked to fuel crisis and M-E tensions
• Govt leans towards internal management reforms
• State ownership to continue despite legacy debt burdens

The Government is planning to restructure SriLankan Airlines, with a final decision on the restructuring model expected within the next two to three months, according to the Civil Aviation Ministry.

Speaking to The Daily Morning yesterday (29), Deputy Minister Janitha Ruwan Kodithuwakku said that the Airline currently operates a fleet of 23 aircraft, but is facing challenges related to the cash flow, largely due to external factors, particularly tensions in the Middle East (ME). “We have 23 aircraft at present, and there are issues with the cash flow due to factors such as difficulties caused by the fuel crisis”.

In response, he said the Government is considering moving ahead with a restructuring process that will focus on internal management reforms. "We are planning to move towards restructuring the SriLankan Airlines, particularly through internal management measures. We have not yet decided under which model the restructuring will be carried out. Studies are ongoing. We expect to reach a decision in the next two to three months."

On an earlier occasion, Kodithuwakku said the Government intended to continue operating the SriLankan Airlines under State control, noting that maintaining ownership allowed revenue generated by the Airline to be used to service long-standing debt obligations.

He explained at the time that although the Airline continued to report overall losses due to historical borrowings accumulated over many years, its day-to-day operations had been generating income. The Airline recorded an operational profit as recently as January of this year, indicating that its aviation services remain commercially active, he said.

The SriLankan Airlines operates passenger and cargo services connecting Sri Lanka with destinations across Asia, Europe, the ME, and Australia, and continues to be viewed as strategically important for tourism, trade, and maintaining international connectivity.