NPP govt. abandons plans to privatize Srilankan Airlines

• Says it should remain with state for tourism promotion  
• Plans for new management improvement 
• Previous Govt. initially planned to sell off 51 per cent stake
• Later, ahead of presidential election, it contemplated alternate approaches to divest it
• In 2023 the airline reported a loss of  Rs.73.2Bn, and in the previous year Rs.165Bn
• However the airline recorded an operational profit of Rs. 1.12Bn for the nine months ending Dec. 2023   

By Kelum Bandara   

The National People’s Power (NPP) government led by President Anura Kumara Dissanayake is to abandon initial plans by the previous rule to sell off or divest the cash strapped SriLankan Airlines, an official said .  

The previous government initially planned the sale process of the national career through the State Owned Enterprises Restructuring Unit . After that the former Cabinet said it abandoned the sale process and decided to look at an alternate model to divest the airline .  

However, Chairman of the NPP Economic Council Prof. Anil Jayantha said the government believes that the national career should remain with the state given its significance for the development of tourism . He said the airline would not be sold off or divested as a result.   He said a new model for the improvement of its management would be considered instead .  The previous Cabinet agreed to take over debts of US $ 510 of the national career in a move to attract a private investor . It originally decided to sell at least 51 percent of the state-owned carrier.  

SriLankan Airlines reported losses of Rs.73.26Mn for the financial year ending March 2023 and Rs.165Bn in 2022. However, the airline made an operational profit of Rs. 1.124 billion in the nine months ending December 31, 2023.