SriLankan Airlines: The Endless Financial Drain on Taxpayers and the Futility of Committees

SriLankan Airlines, the national carrier of Sri Lanka, has been a perennial financial burden since its inception as Air Lanka in 1979. Despite decades of operation, the airline has never turned a profit since being re-nationalised in 2008 and continues to operate at a significant loss, relying heavily on government bailouts funded by taxpayers.

The airline’s chronic financial woes are no secret. Key reasons for its downfall include political appointments in critical decision-making roles, non-transparent procurement processes, and an excessive workforce far beyond operational needs. These systemic issues have led to inefficiencies and wasteful spending, with two-thirds of its routes running at a loss while the airline continues to spend recklessly, confident that the treasury will cover its deficits.

In recent years, attempts to address these problems have been made, such as the appointment of a committee led by renowned human rights lawyer Mr. Weliammuna to investigate and recommend remedial actions. However, the fate of those recommendations remains a "public secret," with no meaningful implementation evident. Following the airline’s dismal first quarter results of 2025, the government is once again considering forming a new committee to study the airline’s affairs, raising scepticism about whether any real change will occur or if this will merely be another exercise in futility[User Query].

The airline’s financial haemorrhaging is stark: for the seven months ended October 2024, SriLankan Airlines reported a pre-tax loss of Rs. 1.96 billion, a reversal from a profit of Rs. 4.13 billion in the same period the previous year. The government had to inject Rs. 9.8 billion in equity in 2024 and allocated Rs. 20 billion in the 2025 budget to repay legacy debts, underscoring the airline’s dependence on state funds to stay afloat.

Operational challenges compound the financial issues. The airline faces severe staff shortages, including the resignation of around 30 pilots in recent months, and struggles with ageing aircraft and technical faults leading to flight delays and cancellations. Despite these challenges, the airline’s management and government have been reluctant to implement effective restructuring or cost-cutting measures.

Moreover, SriLankan Airlines is embroiled in a costly dispute with Airbus over a corruption-tainted aircraft purchase deal, demanding compensation exceeding US$200 million and free aircraft to offset losses. This dispute highlights the airline’s mismanagement and the financial repercussions of past corrupt dealings.

With over 5,400 employees and a fleet of 22 aircraft servicing 37 destinations, SriLankan Airlines remains a significant but costly national symbol. 

Total Debt of US dollars 978 Million (nearly One Billion Dollars). Rs. 51 billion in unpaid invoices. 

Over the next 4 Months, the airline is forecasted to generate a Net Cash Deficit of nearly US dollars 40 million.

The above data is based on the Management Report for the Financial Year ending March 2025.

Given these facts, the continued formation of committees without genuine commitment to implement their recommendations only prolongs the drain on public resources. Taxpayers must demand accountability and decisive action to either reform the airline fundamentally or reconsider its viability as a state-owned enterprise. The status quo of endless losses, political interference, and wasteful spending is untenable and must end.