By: Staff Writer
June 16, Colombo (LNW): Questions over governance at SriLankan Airlines have intensified following warnings from a major employee union that leadership failures continue to threaten the future of the state-owned carrier.
The Inter-Company Employees Union has raised alarm over what it describes as a growing management crisis, citing both the controversial appointment of a new chairman and the prolonged absence of a permanent Chief Executive Officer. According to union representatives, the combination has created a dangerous leadership gap at a time when the airline faces severe financial pressures and an urgent need for reform.
Addressing journalists in Colombo, union officials argued that SriLankan Airlines cannot afford further instability. They claimed that the airline’s longstanding financial troubles have been worsened by weak oversight and poor decision-making, problems they say remain unresolved despite repeated promises of restructuring.
The airline’s financial position paints a stark picture. Government data indicates that cumulative losses had reached more than Rs. 631 billion by August 2025, making SriLankan Airlines one of the country’s most financially burdened state enterprises. Additional losses recorded during the opening months of the current financial year have further intensified concerns about the carrier’s sustainability.
Union President Nisal Adhikari argued that meaningful reform requires more than external recommendations. While the government has appointed a restructuring committee led by telecommunications and technology expert Dr. Hans Wijayasuriya, the union believes internal leadership remains the missing piece.
According to Adhikari, a restructuring committee can design recovery strategies, but implementation ultimately depends on capable executives within the organization. He warned that if those responsible for executing reforms lack credibility or are distracted by controversy, efforts to address inefficiency and corruption could stall.
The union has repeatedly emphasized the need for clean governance, arguing that corruption was a major contributor to the airline’s decline over the years. Officials contend that rebuilding the carrier requires leaders who can identify financial leakages, strengthen accountability mechanisms, and restore employee confidence.
Particular concern has been directed at the airline’s failure to appoint a permanent Chief Executive Officer. The position has reportedly remained vacant for nearly a year, leaving key strategic and operational decisions in limbo. Union representatives claim that this leadership void has allowed financial irregularities and operational weaknesses to persist.
As an example, Adhikari pointed to reports of an Rs. 85 million loss linked to the airline’s operations in Chennai, suggesting that stronger executive oversight could have helped prevent or mitigate such setbacks. While the circumstances surrounding the reported loss remain under scrutiny, the union views it as evidence of the consequences of prolonged leadership uncertainty.
The unfolding dispute highlights broader challenges facing SriLankan Airlines as it seeks to balance restructuring, political oversight, and operational recovery. With mounting debt, continuing losses, and growing pressure from employees, the airline’s ability to secure stable and credible leadership may prove decisive in determining whether its turnaround efforts succeed or falter.