By: Staff Writer
April 14, Colombo (LNW): SriLankan Airlines, saddled with over USD 1.2 billion in accumulated debt, is trying to stay airborne without undergoing proactive restructuring. Acting on the directive of the new government, the national carrier is pursuing a go-it-alone strategy with continued state support, avoiding privatization despite repeated concerns raised by financial experts.
Ignoring IMF Warnings
In a controversial move, the JVP/NPP-led government has chosen to sideline the International Monetary Fund (IMF) recommendations, which included a call for the privatization or partial divestment of the airline. Instead, the administration has initiated a slow-paced internal restructuring process. The IMF, in its recent country report, emphasized that state-owned enterprises like SriLankan Airlines remain a significant fiscal burden, costing taxpayers over LKR 60 billion annually in subsidies and guarantees.
Legacy Debt and Mounting Losses
As of 2025, SriLankan Airlines continues to grapple with financial turbulence. The airline posted a net loss of LKR 163 billion over the past three fiscal years and owes more than USD 750 million to international lenders.
Operational inefficiencies, high lease payments, and elevated fuel costs—accounting for nearly 35% of total operating expenses—have severely strained its bottom line. While the government has injected funds and provided sovereign guarantees, these measures have failed to bring about lasting financial stability.
Cabin Crew Begin ‘Work to Rule’ Campaign
The situation worsened in April when the SriLankan Airlines Cabin Crew Members Association initiated a ‘work to rule’ campaign.
The move, aimed at pressing the management to reinstate onboard meal allowances, has already disrupted crew scheduling.
During the campaign, cabin crew members strictly adhere to their official duty rosters and do not entertain standby duty requests outside designated times.
A recent internal report indicated that this action could affect up to 20% of scheduled flights if not resolved promptly.
Allowances Still in Dispute
The association claims that onboard meal allowances were cut from USD 15 to USD 5 per flight sector during the COVID-19 pandemic. “We accepted those cuts during the crisis,” said a union member, “but now that SriLankan Airlines has narrowed its losses, these benefits should be restored.” He also noted that other key entitlements, such as overseas accommodation quality and layover allowances, remain downgraded.
Employee Morale at Risk
The labor unrest reveals a deeper problem—low employee morale driven by a sense of being undervalued. Many staff members feel that despite improved revenue figures in 2024—reportedly crossing USD 800 million, up 12% from the previous year—they are not seeing the benefits reflected in their compensation or working conditions.
Unless management takes decisive steps, SriLankan Airlines risks losing both public trust and experienced personnel.
