• New business model, possible PPP, formal timeline to follow upcoming Cabinet submission

The Government is preparing a restructuring plan for Sri Lanka’s National Carrier, which is expected to be finalised within the coming weeks before being submitted for Cabinet approval.

A formal timeline for the process will be established following the submission of the plan, according to Deputy Minister of Ports and Civil Aviation Janitha Ruwan Kodithuwakku.

The remarks come against the backdrop of a request by SriLankan Airlines for an additional Rs. 10 billion in Treasury support to address mounting cash flow pressures threatening the National Carrier’s day-to-day operations.

Speaking to The Sunday Morning on the airline’s financial health, Kodithuwakku explained that while a broader restructuring effort was underway, the immediate requirement stemmed from a liquidity crunch.

“There is a problem with the cash flow, the money needed to maintain the airline, so SriLankan has requested additional funds,” Kodithuwakku explained.

He also noted that the airline’s operating costs had increased, driven largely by global energy-related developments following the Israel-US war against Iran.

“Our operational expenditure has increased slightly; fuel costs have doubled,” he said, adding that although the present funding requirement was substantial, the Government was closely monitoring the situation as “the price may change in the future as fuel prices decrease”.