Friday Jun 19, 2026
Friday Jun 19, 2026
Friday, 19 June 2026 00:00 - - {{hitsCtrl.values.hits}}
In the wake of continuing operational and financial shortcomings, the Government has decided to appoint a high-level committee to review the beleaguered SriLankan Airlines (SLA) and direct its restructuring. The Commission is headed by Presidential Advisor Dr. Hans Wijesuriya, and the other prominent members include Ernst & Young Country Managing Partner cum close presidential aide, Duminda Hulangamuwa, and economist Deshal de Mel as well as investment banker Dumith Fernando. According to the cabinet paper submitted by President Anura Kumara Dissanayake, evaluating strategic options, engaging with investors, and overseeing implementation of future strategies are among the committee’s key duties.
Successive administrations have made numerous efforts to heal the wounds of the national airline, however, the sordid state of the state-owned airline has remained the same, while citizens of the republic continuously bailout the financially stressed entity from their tax monies. Appointing committees to evaluate what is wrong with the national carrier and obtain recommendations is nothing new.
During the latter stages of the so-called Yahapalana administration, a committee headed by the then State Minister of Finance and Planning Eran Wickremaratne was given the task of proposing suggestions to improve the service of the airline, but none of the recommendations could be implemented as the Sirisena Government was replaced by Gotabaya Rajapaksa presidency – which was characterised by everything that is wrong in terms of economic policies – a few months later. Again, during the presidency of Ranil Wickremesinghe, the State-Owned Enterprises Restructuring Unit – which was headed by former Lion Brewery CEO Suresh Shah – seriously considered divesting the airline, but no foreign or local entity was willing.
Once more, we are going to witness another restructuring committee. More often than not, such commissions serve as cosmetic exercises to appease public sentiments without addressing root causes or delivering tangible outcomes.
The Government has not been able to find a CEO for over 12 months for the national carrier, causing lack of direction at a time when the aviation industry worldwide is facing numerous challenges due to the turbulence in the Middle East.
The financial condition of the SLA is deteriorating continuously. For the financial year 2025, the crisis-ridden firm suffered a massive loss of Rs. 23.2 billion. Its total liabilities and negative equity were Rs. 544.4 billion and Rs. 340 billion respectively at the end of the reporting period. Despite such mounting losses, the airline had requested further Rs. 100 billion from the Treasury.
Appointments to the top by successive regimes have failed to uplift the airline sustainably. The composition of the latest restructuring Committee can be commended but whether it can navigate the national carrier laden with debt and losses successfully or not only time will tell amidst longstanding calls for divestiture or winding up of SriLankan Airlines.
