COLOMBO, Sri Lanka (Diya TV) — Sri Lanka announced plans to facilitate the sale of its struggling national airline, SriLankan Airlines, amid ongoing financial woes and operational challenges. The government revealed that it would absorb a significant portion of the airline’s debt, amounting to $510 million, in a bid to attract potential buyers.
This development follows a recent incident where flight cancellations were triggered by a stowaway rat, compounding the airline’s difficulties. SriLankan Airlines has long been a burden on the national budget, grappling with financial losses since 2008.
The government’s strategy aims to make the investment more appealing to prospective buyers through a two-pronged approach. Firstly, by assuming a substantial portion of the airline’s debt, it reduces the financial burden on potential investors, allowing them to focus on operational improvements and growth opportunities. Secondly, Sri Lanka emphasizes the airline’s strategic location in Colombo, positioning it as a vital regional travel hub connecting South Asia, Southeast Asia, and Australia.
Despite these efforts, SriLankan Airlines’ future remains uncertain. While the government’s measures aim to enhance the airline’s appeal, significant challenges persist, compounded by the broader economic crisis facing Sri Lanka.
As the deadline for requests for qualification (RFQs) recently passed, the Sri Lankan government will assess the proposals received and shortlist potential buyers for the next stage of the bidding process. The coming months will be crucial in determining the fate of SriLankan Airlines and its role in the nation’s aviation sector.
SriLankan Airlines, established in 1979 as Air Lanka, serves as the national carrier of Sri Lanka. Over the years, it has evolved into a key player in the global aviation industry, operating a network of over 100 destinations across 47 countries. With its main hub situated at Bandaranaike International Airport in Katunayake, Sri Lanka, the airline offers a diverse range of services, including Economy, Business, and First Class cabins.
SriLankan Airlines boasts a mixed fleet of Airbus and Boeing aircraft, including the Airbus A320, A330, and A350, as well as the Boeing 787 and 737. Despite facing challenges, the airline remains a significant contributor to the Sri Lankan economy, employing over 5,000 individuals and generating substantial revenue from tourism.
With the government’s decision to sell a majority stake in SriLankan Airlines, the focus now shifts to finding a suitable buyer who can navigate the airline through its current challenges and chart a path towards profitability and sustainability in the competitive aviation market.
