SriLanka Airlines to get Rs20bn to repay old debt and interest
- CNL Reporter
- February 18, 2025
- Aviation news
- SriLanka Airlines to get Rs20bn to repay old debt and interest
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State-run SriLankan Airlines will get 20,000 million rupees from tax payer funds to repay old debt and interest, President Anura Kumara Dissanayake said, presenting a budget for 2025.Attempts by previous administrations to sell the airline has failed due to no takers, he said.
“Though funds are set aside to repay debt, there is will be no more funds for day-to-day operations,” President Dissanayake said.The government will sign agreements with banks which have funded SriLankan and give 10 billion rupees for principle repayment and 10 billion for interest.
“The Airline would be fully responsible for ensuring operating profitability once these legacy debt service costs are settled by the Government,” the budget speech said.“A new medium term strategic plan is being devised by the company towards this end.”
SriLankan Airlines started to run losses after then President Mahinda Rajapaksa ousted Emirates as its managing shareholder. Emirates was using Sri Lanka as a hub to feed its network.At the time SriLankan was the largest foreign carrier into India. It now Emirates.
SriLanka was also operating as a surrogate carrier for the Maldives. SriLankan is still the largest foreign carrier to Male.
