Rs. 20 b public bailout for SriLankan Airlines

Tuesday, 18 February 2025 01:14 - - {{hitsCtrl.values.hits}}

The Government yesterday announced a

Rs. 20 billion bailout for national carrier — SriLankan Airlines (SLA) via public funds.

The 2025 Budget presented by President and Finance Minister Anura Kumara Dissanayake revealed a Rs. 20 billion allocation for the settlement of SLA’s legacy debt.

Rs. 20 b

Dissanayake told Parliament that SLA performs a leading service in the transportation of passengers and cargo by air. Furthermore, previous Governments’ attempts to divest State ownership and attract private investment have also been unsuccessful.

In light of this, the Government would sign an agreement with those banks and set aside Rs. 10 billion for loan capital repayment in 2025 as well as Rs. 10 billion for interest payments.

“The airline would be fully responsible for ensuring operating profitability once these legacy debt service costs are settled by the Government. A new medium-term strategic plan is being devised by the company towards this end. Accordingly, we propose to allocate Rs. 20 billion for this purpose,” the President said.

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