Archive · 9 Nov 2025
Sri Lanka to Restructure National Airline After Failed Sale Efforts
Sri Lanka has a big airplane company that has been losing a lot of money for a long time.
The government tried to sell it or find someone else to run it, but nobody wanted to buy it.
Now, the President says they will try to fix how the company is run instead.
They want to make a new plan to make it work better by the end of the year.
This is important because the company owes a lot of money and is costing the country too much.
The International Monetary Fund, which is helping Sri Lanka with money, wants the country to fix these money-losing companies.
If they can't fix the airline, the government says they will do something else.
Sri Lanka's government will restructure its loss-making national airline, Sri Lankan Airlines, after failing to find a buyer for management control.
President Anura Kumara Dissanayake announced the decision while presenting the 2025-26 budget, stating there were 'no buyers'.
The airline has accumulated losses of approximately USD 2 billion and defaulted debt of USD 210 million, with a USD 175 million bond in arrears.
Restructuring the airline is crucial due to conditions attached to Sri Lanka's nearly USD 3 billion IMF bailout extended in 2023.
The government aims to complete the restructuring by the end of December or early next year, with an alternative action planned if it fails.
- Who
- Sri Lankan government, President Anura Kumara Dissanayake
- What
- Restructuring the loss-making national airline, Sri Lankan Airlines, after failing to find a buyer for its management control.
- When
- The President announced this on Friday while presenting the 2025-26 budget. The government aims to restructure by the end of December or early next year.
- Where
- Sri Lanka
- Why
- To address the airline's significant accumulated losses and defaulted debt, which is a condition of Sri Lanka's IMF bailout and a burden on state coffers.
- Accumulated Loss
- SLRs 596,461 million (approx. USD 2 billion) as of March 31, 2025
- Defaulted Debt
- USD 210 million
- Bond Debt
- USD 175 million (5-year bond in arrears)
- IMF Bailout
- Nearly USD 3 billion (extended in 2023)
- Restructuring Deadline
- By end of December (aim) / early next year (management plan)