Government aims to make SriLankan Airlines profitable

Daily Mirror and Newswire report that Cabinet Spokesperson Minister Nalinda Jayatissa said the government intends to make SriLankan Airlines profitable. Daily Mirror notes that the carrier continues to incur substantial losses; Newswire adds that Jayatissa cited progress towards the goal and said rising tourist arrivals could help the airline operate without losses.

Newswire reports that the Finance Ministry’s Mid-Year Fiscal Position Report put the airline’s pre-tax loss at Rs. 35.6 billion for the opening three months of the 2026/27 financial year, compared with a Rs. 12 billion net loss in the same stretch of the prior financial year. Revenue climbed from Rs. 62.6 billion to Rs. 82.8 billion, while spending grew 40.4% to Rs. 95.2 billion.

Newswire reports that aircraft fuel spending reached Rs. 41.2 billion after rising 93%. It says the Finance Ministry connected some operating problems to the worsening Middle East conflict, which prompted the airline to halt services to several destinations in the region. The airline group recorded a net loss of Rs. 32.2 billion, with SriLankan Catering contributing net income of Rs. 3.4 billion.

Newswire reports that the Finance Ministry cited persistent structural financial and cash-flow pressures, including fuel and maintenance expenses, foreign exchange losses, financing costs and significant debt. At June 2026’s end, liabilities were Rs. 561.4 billion and assets Rs. 209.9 billion, leaving equity negative by Rs. 351.5 billion.

Newswire reports that the government supplied financial assistance during the first half of 2026 for certain loan payments. Jayatissa said the precise funding for the profitability effort would be presented in the 2027 Budget.