Restructuring of SriLankan Airlines to be completed in 6 months

The restructuring of State owned SriLankan Airlines is to be completed in 6 months, Ports and Civil Aviation Minister Nimal Siripala de Silva said.

He warned that the jobs of SriLankan Airlines employees is at risk if immediate restructuring measures are not implemented.

Addressing a press briefing held at the Presidential Media Centre today (30), Minister Nimal Siripala de Silva expressed concerns about the potential loss of jobs for approximately 6,000 employees at SriLankan Airlines if immediate restructuring measures are not implemented.

The Minister emphasized that the Government cannot sustain the financial losses incurred by SriLankan Airlines and it would be unfair to continue using taxpayer funds in this manner.

To address the situation, the Government has already initiated efforts to engage the support of international financial experts, with the aim of conducting the restructuring process in a transparent manner, as part of their commitment to building a stable country.

“SriLankan Airlines, established as our national carrier many years ago, holds a unique position. While it managed to generate a profit of Rs. 30 million during the period it was under the control of Emirates Airlines, it has struggled to achieve profitability otherwise,” he said.

The Minister said that the airline is primarily funded by the taxes of ordinary citizens, including those who have never experienced air travel.

“We take pride in having our own national airline, but we must question whether the cost associated with maintaining it is justified,” he added.

The Minister said that SriLankan Airlines carries a debt of US$ 1.2 billion and various organizations, including local state banks, have had to cover outstanding payments for international bonds and leased planes.

“Additionally, we have accumulated unpaid fuel bills. Operating an airline under such immense debt is unsustainable,” the Minister said.

He said that due to the economic challenges, including foreign exchange difficulties, the Government is unable to provide financial support for the losses as it has done in the past.

The restructuring plan entails the Government retaining a 51% share, with the remaining 49% to be offered to another investor.

Although some profits are generated through ground operations and SriLankan Catering Company, Minister Nimal Siripala de Silva said that they are insufficient to cover the airline’s losses. (Colombo Gazette)