State-run SriLankan Airlines is preparing a five-year plan to expand its fleet and increase its market share, aiming for financial sustainability, Deputy Minister of Finance and Planning Harshana Suriyapperuma told parliament in February.
He added that SriLankan Airlines is restructuring its balance sheet, and efforts to address its dollar-denominated debt are underway. As part of the 2025 budget, the government, which came to power in late 2024 promising a system change, has allocated Rs20 billion to settle legacy debt tied to the airline.
Previous governments have attempted to reform SriLankan Airlines, but the restructuring efforts, including a controversial A350 aircraft acquisition deal, have been unsuccessful. The airline had earlier projected profitability by 2013 following the country’s post-war economic expansion, but financial losses have persisted.
Under its newly appointed board of directors, the airline is formulating a strategic plan covering 2025/26 to 2029/30. As part of this plan, SriLankan aims to raise its share of traffic from Colombo to international destinations from 35% to 45%. Suriyapperuma said the airline also seeks to consolidate its presence on routes where it holds market leadership and pricing power.
According to the minister, plans to expand the fleet are expected to improve economies of scale and reduce unit costs. The Ministry of Finance is discussing its restructuring and expansion strategy with the airline.
Sri Lanka, which defaulted on its external debt in 2022, continues to experience financial instability—loss-making state-owned enterprises and an inefficient public sector burden the country.