COLOMBO- The Sri Lankan government has reversed the previous administration’s decision to privatize SriLankan Airlines (UL), according to an announcement from the President’s Media Division.
Officials will maintain it as the national carrier while implementing a new management structure aimed at achieving profitability.
Photo- SriLankan Airlines; Compiled By Aviation A2ZSriLankan Airlines Privatization Plan Canceled
President Anura Kumara Dissanayake revealed this policy shift during a high-level meeting with senior Sri Lankan Airlines (UL) officials at the Presidential Secretariat.
The discussions centered on developing a sustainable future for the airline through reforms targeting improved profitability, debt reduction, and new investment opportunities.
President Dissanayake emphasized that immediate action must be taken to restructure management and operational systems. He noted that despite recent operational profits, the airline remains one of the country’s most financially troubled state-owned enterprises due to years of mismanagement.
“SriLankan Airlines must be rebuilt into a profitable national carrier that serves both the public and the country’s economic goals.”
Anura Kumara Dissanayake, President, Sri Lanka
The President called on airline officials to implement bold and practical measures to transform the carrier into a successful, self-sustaining public asset.
Photo: By John Taggart; Wikimedia CommonsPrevious Privatisation Efforts
SriLankan Airlines (UL) had been slated for privatization under the previous government as part of broader economic reforms.
The airline has struggled with significant financial challenges for years, accumulating substantial debt while facing intense competition from larger regional carriers.
The privatization plan emerged following Sri Lanka’s severe economic crisis that began in 2022, which forced the country to seek International Monetary Fund (IMF) support. Selling the national carrier was considered an essential step toward reducing government debt and ending state subsidies to loss-making enterprises.
Emirates and SriLankan Airlines; Photo- EmiratesSriLankan Airlines Financial Struggles
SriLankan Airlines (UL) has faced mounting financial difficulties for over a decade. After Emirates Airline (EK) ended its management contract in 2008, the carrier has operated under full government control with inconsistent financial performance. Accumulated losses have placed significant strain on Sri Lanka’s public finances.
The airline’s challenges intensified during the COVID-19 pandemic when global travel restrictions devastated the aviation industry. While many international carriers received government bailouts, Sri Lanka’s economic crisis limited its ability to provide similar support.
Despite these obstacles, the airline has maintained routes connecting Sri Lanka to key international destinations in Asia, the Middle East, and Europe, serving as an important gateway for the country’s tourism industry.
Photo: Credits to CreatorFuture Outlook
The government’s new approach aims to preserve national ownership while implementing substantial internal reforms.
Officials have not yet detailed specific changes to the management structure or operational strategy that will drive the promised turnaround.
Aviation experts note that successful reform will require addressing multiple challenges, including fleet modernization, route optimization, and improved operational efficiency, all while managing the airline’s existing debt burden.
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The post Sri Lanka Govt Cancels SriLankan Airlines Privatization Plan appeared first on Aviation A2Z.
