SriLankan Airlines Gets $67.5M, CEO Plans Fleet Expansion

SriLankan Airlines is set to receive LKR20 billion ($67.5 million) from the Sri Lankan government to service debt and interest payments. President Anura Kumara Dissanayake announced the financial support during his 2025 budget speech, allocating LKR10 billion for loan repayments and another LKR10 billion for interest. The airline remains responsible for ensuring operational profitability after these payments.

Speaking at the Asia Aviation Festival in Singapore, CEO Richard Nuttall highlighted the airline’s struggle with high financing costs, consuming up to 17% of revenue. While SriLankan Airlines has been operationally profitable for three years, legacy debt remains a challenge. Nuttall revealed plans to double the current fleet of 22 aircraft within five years but acknowledged intense leasing competition.

The carrier, an all-Airbus operator, is evaluating options for replacing its aging A330s. Potential future aircraft include the A330-900neo, A350, or Boeing 787. The CEO emphasized that near-term expansion will focus on increasing flight frequencies rather than adding new destinations.

Sri Lanka’s recovering economy and growing tourism sector offer promising opportunities for the national carrier. However, Nuttall expressed frustration over missed growth prospects, citing Sri Lanka’s strategic location and strong traffic flows. The government aims to keep SriLankan Airlines under state ownership to support tourism-driven economic growth.

With new financing options and strategic fleet expansion, SriLankan Airlines is positioning itself for a stronger future, balancing operational profitability with long-term fleet modernization.

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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com