The Sri Lankan government has announced the formation of a high-level committee to undertake a comprehensive review and restructuring of the country’s national carrier, SriLankan Airlines, as part of efforts to improve its financial sustainability and operational efficiency. The move comes as the airline continues to grapple with substantial accumulated losses and long-standing financial challenges.
According to government officials, the newly appointed committee will be responsible for evaluating the airline’s current strategic direction, examining possible restructuring models, and recommending a roadmap that aligns with the government’s broader economic objectives. The panel will also oversee the implementation of the selected strategy and provide guidance throughout the restructuring process.
SriLankan Airlines, which has been operating since 1979, has undergone several attempts at reform over the years. Previous efforts included searching for strategic investors and launching a formal privatization process in 2023. However, the divestment initiative was discontinued in 2024 after failing to attract a suitable investor.
The current administration, led by President Anura Kumara Dissanayake, has opted against privatization and instead chosen to focus on restructuring and internal reorganization. Government figures indicate that the airline’s accumulated losses have surpassed USD 2 billion, highlighting the urgency of implementing long-term reforms.
The committee comprises senior economic advisors, financial and corporate strategy specialists, investment banking professionals, government representatives, legal experts, aviation industry specialists, and officials associated with the airline. The panel will be chaired by Dr. Hans Wijayasuriya, who serves as the President’s Senior Adviser on the Digital Economy.
As part of its mandate, the committee will conduct an independent assessment of the airline’s future prospects, identify restructuring requirements, evaluate strategic alternatives, and recommend the most suitable course of action to create a commercially viable and financially sustainable national carrier. The government has stated that reducing the long-term fiscal burden on the state remains a key objective of the exercise.
The restructuring initiative will be carried out in collaboration with the International Finance Corporation (IFC), which will serve as the transaction advisor. The committee is expected to remain operational until the review and restructuring process is completed or until it is formally dissolved by the government.
The latest move signals Sri Lanka’s renewed effort to secure the future of its national airline while balancing commercial performance with the country’s broader economic recovery agenda.
