SriLankan Airlines incurs loss of Rs. 35.6 billion: Finance Ministry's interim report reveals

09-Nov-2026

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SriLankan Airlines is facing severe financial difficulties amid continuing conflicts in the Middle East, instability in West Asia and rising global fuel prices, the Ministry of Finance has stated.

The Ministry's interim fiscal position report has revealed that the national carrier recorded a loss of Rs. 35.6 billion before taxation during the first three months of the 2026-2027 financial year.

According to unaudited statements, the airline generated revenue of Rs. 82.8 billion during the period, compared with Rs. 62.6 billion in the corresponding period of the previous financial year.

Despite the increase in revenue, expenditure rose by 40.4 per cent, from Rs. 67.8 billion to Rs. 95.2 billion.

The 93 per cent increase in aviation fuel costs, largely attributable to the conflicts in the Middle East, was the primary reason for the sharp rise in expenditure.

The report also noted that pressure arising from higher fuel costs and the depreciation of the rupee against foreign currencies contributed to a loss of Rs. 12.5 billion during the quarter.

The Ministry further highlighted continuing structural weaknesses, liquidity constraints, high maintenance costs and the airline's substantial debt burden as major challenges affecting its financial sustainability.

The Government has also intervened to address the airline's financial requirements. Following a debt restructuring arrangement involving US$175 million, a bank liability of US$126.5 million was transferred to the Government's debt stock on March 20.

Although a further US$30 million was provided to meet the airline's short-term financial requirements, its current financial difficulties, together with longstanding losses and disputes, continue to pose serious challenges.