By: Staff Writer
June 05, Colombo (LNW): State-owned SriLankan Airlines has taken a bold step towards expansion despite ongoing financial struggles, with the arrival of a new Airbus A330-200 aircraft from France. The wide-body aircraft, which flew low over Colombo and Katunayake before landing at Bandaranaike International Airport (BIA), marks the airline’s first addition under its renewed fleet expansion plan.
The A330-200, welcomed by large crowds in Colombo, is expected to enhance both long-haul and short-haul international operations. In a statement, SriLankan Airlines said the new aircraft will help improve connectivity between Sri Lanka and global destinations. The fly-past event was seen as a symbolic boost to the airline’s re-fleeting strategy.
Despite the celebration, the airline remains in a precarious financial position. According to Harsha de Silva, Chairman of the Committee on Public Enterprises, SriLankan Airlines has been incurring losses on 31 out of 45 routes, accumulating a loss of Rs. 3.4 billion by March 2025. Passenger revenue dropped by Rs. 40 billion, although fuel costs decreased by Rs. 23 billion. The airline also holds liabilities of $978 million and Rs. 51 billion in domestic debt, with a bond restructuring involving interest arrears of around $200 million.
The airline’s leadership is now pursuing what has been dubbed the ‘Hayleys Plan’ to expand the fleet to 25 aircraft by leasing five more planes across 2025 and 2026. Chairman Sarath Ganegoda said the company has scrapped previous plans approved by the former government to lease four wide-body aircraft and is currently negotiating new deals under more favorable terms.
Ganegoda noted that although a previous cabinet decision had approved leases with ORIX Aviation and Aergo Capital, those agreements have not progressed. Instead, SriLankan is now focused on acquiring aircraft to re-enter several profitable routes that have been left unserved due to capacity shortages—such as Beijing-Colombo and Nairobi-Colombo, which are considered strategic connections for passengers traveling to Australia.
The airline, which currently operates an all-Airbus fleet of 22 aircraft (nine A330s and 13 A320/A321s), aims to increase its global market share from 35% to 45% over the next five years. However, the financial restructuring process remains incomplete. The 2025 national budget allocated Rs. 20 billion to address the airline’s legacy debt following past losses and mismanagement, including a failed A350 re-fleeting deal.
As part of its recovery and growth strategy, SriLankan is expected to add at least two more aircraft by the end of 2025, positioning itself to compete more effectively on profitable international routes.
