- Airline to be strengthened before B2B restructuring
- Profit expected by end 2026 after internal reforms
- Final decision on future expected this year
The Government will not rush the restructuring of SriLankan Airlines, opting instead to first restore the National Carrier's financial health to strengthen its bargaining position before pursuing a business-to-business (B2B) partnership, Deputy Civil Aviation Minister Janitha Ruwan Kodithuwakku said.
Speaking to The Daily Morning yesterday (1 July), he said the Government had spent the past year improving the Airline's financial position and carrying out internal reforms instead of rushing into a deal that would not benefit the country.
"We have spent some time trying to bring the SriLankan Airlines to a better position. We are carrying out internal restructuring and expect the Airline to record a small profit by the end of the year."
He said that while restructuring is certain, the Government intended to pursue B2B partnerships instead of disposing of the Airline at a low value. "We expect to move towards a B2B model. But, before that, we must build our bargaining power. We shouldn’t hand over the Airline to another party for just any amount. The time that we are taking now is to strengthen our position so that we can negotiate terms that are beneficial to the Government and the people."
Speaking further, Kodithuwakku said: "If we offer it in its current condition, no one will come. Even if someone does, it will be to buy it at a bargain price. We don’t want that to happen. We want to improve the Airline first and then move towards a meaningful restructuring. We expect to arrive at a final decision by the end of this year."
The SriLankan Airlines has remained one of the largest loss-making State-owned enterprises (SOEs) for years, with successive Governments injecting Treasury funds and providing State guarantees to keep the National Carrier afloat. Restructuring the Airline became one of the key SOE reform commitments under Sri Lanka's economic recovery programme.