SriLankan Airlines plunges to Rs35.6bn loss as fuel costs soar, capital eroded

Daily FT reports that the Finance Ministry said 51 major state-owned enterprises recorded a combined profit of Rs. 259.3 billion during the first half of 2026. That total compares with Rs. 227.8 billion for the same six months a year earlier, according to Daily FT.

EconomyNext reports that SriLankan Airlines recorded a Rs. 35.6 billion pre-tax loss in the first quarter of the 2026/27 financial year, versus a net loss of Rs. 12.0 billion in the matching quarter of 2025/26. Revenue rose from Rs. 62.6 billion to Rs. 82.8 billion, while overall operating expenses increased 40.4% to Rs. 95.2 billion, EconomyNext says.

EconomyNext reports that aircraft fuel expenditure climbed 93% to Rs. 41.2 billion. Airspace restrictions in West Asia led to cancellations and changes to the airline’s network; rerouted services brought some passengers through Colombo, providing limited assistance, according to EconomyNext. The airline’s operating loss was Rs. 12.5 billion, with foreign-exchange losses adding pressure. SriLankan Catering made a net profit of Rs. 3.4 billion, leaving the group with a loss of Rs. 32.2 billion, the outlet reports.

EconomyNext reports that the airline’s negative equity stood at Rs. 351.5 billion, with liabilities of Rs. 561.4 billion and assets of Rs. 209.9 billion. The Finance Ministry’s mid-year assessment, as described by EconomyNext, cited operating shortfalls, fuel and maintenance expenses, currency losses and financing costs as factors limiting the company’s ability to produce enough cash for its business and financial commitments.

EconomyNext reports that the General Treasury paid toward bank-loan repayments and provided US$30 million in emergency funding to sustain operations. The outlet also reports that in March 2026 the government incorporated US$126.5 million in restructured, government-guaranteed bonds into public debt. In June 2026, Cabinet approved a Strategy and Restructuring Committee to review SriLankan Airlines, EconomyNext reports.

Written automatically by AI from the outlets’ own reports, and not reviewed by an editor. It can be wrong — the original report is the authority.