January 06, Colombo (LNW): Following a shift in policy after the recent presidential election, the newly formed government has instructed relevant authorities to submit proposals for the long-term development of SriLankan Airlines over the next five years.
According to sources familiar with the matter, the government has decided against privatising the national carrier, opting instead for a comprehensive business plan aimed at reviving and strengthening the airline.
The previous administration had initially proposed privatising SriLankan Airlines to address its ongoing financial difficulties, a move that faced significant opposition and was later abandoned.
In its place, the previous government began exploring alternative strategies for the airline’s development, though no concrete steps were taken before the change in leadership.
Upon taking office after the September 2024 presidential election, the new government chose a different path, opting for a nationalised approach to revitalise the airline.
Rather than selling off stakes in SriLankan Airlines, the administration has requested a detailed proposal on how best to improve the airline’s financial performance, operational efficiency, and overall sustainability.
The airline, which has faced substantial financial challenges in recent years, showed signs of recovery by the end of 2023. For the nine months ending December 31, 2023, SriLankan Airlines reported a profit of Rs. 1.124 billion, a notable achievement considering the tough financial climate.
This positive turn, highlighted in the 2023 budget report, has provided hope that with the right strategies, the airline can continue to improve its financial standing without the need for privatisation.
