Sri Lankan Airlines to Remain State-Owned Amidst Privatization Halt

The Sri Lankan government has decided to retain full ownership of SriLankan Airlines, halting previous plans for privatization. This crucial decision was made to ensure the continuous operation and sustainability of the national carrier, which has faced numerous challenges in recent years.

Minister of Transport, Highways, Ports, and Civil Aviation, Bimal Rathnayake, affirmed the government's decision during a press conference held on January 27th, 2025. "Under the previous administration, there were plans to privatize the airline, but those have now been suspended," Minister Rathnayake said. "We are taking the necessary steps to ensure SriLankan Airlines remains in state hands, prioritizing its revitalization and operational efficiency."

The airline has faced multiple operational hurdles, including grounding three aircraft for three years without engines. Minister Rathnayake highlighted that the former government led by Ranil Wickremesinghe spent $9 million per month to keep these aircraft grounded. However, under the current administration's efforts, one of the grounded aircraft has returned to service, with expectations for the other two to be operational by April 2025.

Retaining state ownership of SriLankan Airlines is seen as a strategic move to safeguard national interests and prevent potential job losses. Additionally, the government aims to secure vital funds to support the airline's operations and enhance its fleet capabilities through restructuring efforts.

Minister Rathnayake added, "Ensuring the airline remains state-owned allows us to maintain control and oversight, crucial for our nation's aviation sector stability."

Looking forward, the Sri Lankan government plans to focus on restructuring the airline rather than seeking privatization alternatives. This approach includes optimizing operational efficiencies and exploring new revenue streams to strengthen the airline’s financial health.