SriLankan Airlines to Remain State-Owned

Sri Lankan President Anura Kumara Dissanayake has announced that SriLankan Airlines (UL) will remain a state-owned entity, effectively ending yet another attempt to privatize the heavily indebted carrier. Dissanayake emphasized the importance of the airline as a source of national pride, stating that it should be owned by Sri Lankans, according to SriLankan Airlines chairman Sarath Ganegoda, reported ch-aviation.com.

Dissanayake, representing the left-leaning National People’s Party, won the September presidential election on a platform that included a commitment to halt the privatization of state-owned enterprises, including the national airline, which was pushed by the previous government under pressure from the International Monetary Fund (IMF).

Former President Ranil Wickremesinghe had previously attempted to sell a majority stake in SriLankan Airlines but was unsuccessful. Earlier this year, the government narrowed responses from an expression of interest campaign to six shortlisted applicants but ultimately determined that none could effectively manage the airline. Following this, the government opted for an alternative divestment strategy but failed to clarify what that path would entail before the election.

Despite reporting a net profit of LKR 1.124 billion (USD 3.8 million) for the nine months ending December 2023, SriLankan Airlines is still burdened by significant debt and a shortage of hard currency. The airline operates in a challenging economic environment exacerbated by Sri Lanka’s weak local currency.

As of now, SriLankan Airlines serves 37 airports in 21 countries, operating a fleet of 22 aircraft, which includes seven A320-200s, two A320-200Ns (one inactive), four A321-200Ns (two inactive), two A330-200s, and seven A330-300s (one inactive).

Related news: https://airguide.info/?s=SriLankan+Airlines

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