By Adolf
The recent tenure of Sarath Ganegoda as Chairman of SriLankan Airlines has been a lightning rod for criticism, raising a pivotal question: did his “ego ride” further bury the national carrier? While the airline’s struggles are decades in the making, Ganegoda’s leadership appears to have deepened its crisis. Appointed by President Anura Kumara Dissanayake, Ganegoda’s chairmanship was immediately clouded by allegations of a conflict of interest due to his ties to the Hayleys Group and its aviation-related interests. This came during a period where the government had failed to find a buyer for the airline, a goal former UNP State Minister Eran Wickramaratne had pursued and said he was willing to give it away for 1 USD. Ranil Wickremesinghe appointed Suresh Shah, a liquor company CEO, to restructure the airline. He squandered 200 million of public money and achieved nothing. He has now got into HNB as Chairman. How they guys get better jobs and what the CICBO is doing with such audit revelations is a mystery to ordinary people.
Damage
The financial damage under Ganegoda’s watch is significant. The government has been forced to pump billions in taxpayer money into the airline, including a Rs. 20 billion debt settlement provision in the 2025 budget. One particularly symbolic act, a Rs. 50 million fly-past with repainted old aircraft, was widely condemned as a wasteful display of vanity. The fiscal results speak for themselves. Despite a 15% reduction in expenses, the airline posted a net loss of Rs. 8.4 billion for FY2024/2025, weighed down by a massive historical debt burden of Rs. 586.5 billion. Following Ganegoda’s resignation in March 2026, his successor now faces the fallout while the airline reportedly seeks an additional Rs. 100 billion in state funding. A detailed restructuring plan by Sanjana Fernando has been presented according to analysts. Unlike the costly failures of the past, this is an analysis-driven blueprint designed to diagnose the root causes of the airline’s losses. The plan proposes a painful but necessary solution: downsizing. It argues the airline cannot grow its way out of structural losses and recommends cutting unprofitable routes, especially in India, which cost $24 million annually. It also advocates for an all-wide-body fleet to maximize cargo revenue, and listing minority stakes in profitable ground handling, catering, and engineering units to raise $150 million. The fundamental contrast with Ganegoda’s approach is stark. One is built on cost-cutting, financial discipline, and a “leaner” model. The other, in the eyes of critics, was marred by conflict of interest and symbolic grandstanding.
Conclusion
Did Sarath Ganegoda bury SriLankan Airlines? He certainly deepened the hole. His tenure was a period of controversy and continued financial hemorrhage, characterized by a failure to tackle the core structural issues that have plagued the airline for years. The existence of a credible, if difficult, restructuring plan suggests a path forward exists. However, the challenge remains immense: 38 of the airline’s 52 routes are unprofitable, its debt is crippling, and it has been without a permanent CEO for over a year. For SriLankan Airlines to be saved, it will require leadership that prioritizes economic reality over political optics and makes the tough decisions that previous administrations have consistently avoided. The “ego ride” is over; the time for accountability is now. By appointing Gota’s advisors like Hans Wijesuriya and a Chairman from the Finance Ministry who knows nothing about airlines other than doing legal agreements, AKD is certainly setting the stage for further disaster. AKD might as well put Eran Wickramaratne, who has crossed over to his side, as the Chairman and get him to sell it for 1 USD at least the tax payers won’t have to cough out billions.