By: Staff Writer
December 16, Colombo (LNW): The aviation world has witnessed its fair share of offbeat airlines, and Sri Lanka’s Mihin Lanka is no exception. Operating from 2007 to 2016, this government-owned low-cost carrier struggled to stay afloat amidst financial mismanagement, political controversies, and questionable leadership. Though now defunct, Mihin Lanka’s story remains an eyebrow-raising chapter in Sri Lanka’s aviation history.
An Unconventional Start and Questionable Practices
Mihin Lanka was launched during the administration of President Mahinda Rajapaksa. From the outset, the airline faced criticism, with local media labeling it a “political embarrassment” and an “extravagance.” The airline’s establishment lacked cabinet approval, with Sri Lanka’s Civil Aviation Authority also initially bypassed. Even the country’s aviation minister was reportedly unaware of the airline’s inception.
The leadership team reflected the political undertones of the project. Among the three directors, one was the President’s brother, while another was a commander in the Sri Lankan Air Force. The airline’s CEO, Sajin Vaas Gunewardena, received approval to operate the carrier within days—an expedited process that typically takes years. This expedited approval, coupled with hiring inexperienced trainee pilots, drew widespread criticism.
Operations and Destinations
Despite its rocky start, Mihin Lanka operated for nine years, connecting Colombo’s Bandaranaike International Airport to 14 domestic and international destinations, including routes across South Asia, Southeast Asia, and the Gulf. However, the airline’s financial woes began early and never subsided.
Lingering Debt and Financial Mismanagement
By the time Mihin Lanka ceased operations on October 30, 2016, it had accumulated significant financial liabilities. According to the Ministry of Finance’s Mid-Year Fiscal Position Report, as of June 30, 2024, the airline still owes Rs. 3,201.77 million in unresolved debts. This lingering financial burden underscores the long-term repercussions of mismanagement in Sri Lanka’s aviation sector.
New Deputy Minister of Ports and Civil Aviation, Janitha Ruwan Kodithuwakku, recently acknowledged Mihin Lanka’s unresolved financial issues. However, he emphasized that the government’s current priority is preparing for the upcoming tourism season by enhancing airport infrastructure and ensuring sufficient flight arrangements.
Part of a Broader Pattern
Mihin Lanka’s collapse is symptomatic of larger systemic issues within Sri Lanka’s aviation sector, particularly under the Rajapaksa administration. During this period, the national carrier SriLankan Airlines underwent an expensive re-fleeting plan, costing $2.3 billion, despite more economical alternatives being available. Investigations by the Weliamuna Commission uncovered fraudulent activities, including falsified documents to lease luxury vehicles for officials, a failed air taxi service, and rampant conflicts of interest during procurement processes.
Future Prospects
While the government appears focused on boosting tourism, Mihin Lanka’s unresolved status remains on the agenda. Deputy Minister Kodithuwakku hinted that the Ministry of Ports and Civil Aviation plans to deliberate on the airline’s liabilities soon, although tangible steps remain uncertain.
The story of Mihin Lanka serves as a cautionary tale of financial mismanagement, political interference, and misplaced priorities in the aviation industry—lessons that Sri Lanka must heed to avoid repeating its turbulent history.
