Taxpayers to Bail Out SriLankan Airlines Again? Asks Harsha

COLOMBO (News 1st); Opposition MP Dr. Harsha de Silva has raised serious concerns over the government’s decision to retain full ownership of SriLankan Airlines, warning that taxpayers will be forced to bear the financial burden of an airline that continues to operate at a significant loss.

Speaking in Parliament, Dr. de Silva criticized the government’s recent declaration that it would make “all sacrifices” to ensure the airline remains a state-owned entity. “This means there is no opportunity for private investment. The burden falls squarely on the public,” he said.

Dr. de Silva pointed to troubling financial indicators. As of March 31, SriLankan Airlines had recorded a 143% increase in losses, totaling Rs. 3.4 billion, despite a Rs. 23.5 billion reduction in fuel costs. Passenger revenue had also plummeted by Rs. 40 billion. Of the airline’s 45 routes, 31 are reportedly operating at a loss.

He also highlighted the airline’s staffing costs, noting that while 12,000 young women had recently applied for cabin crew positions, the airline already employs 975 crew members and spends Rs. 9 billion annually on salaries.

Dr. de Silva questioned the government’s ability to secure international financing without offering guarantees, especially under the proposed repeal of the Foreign Loans Act and the introduction of the Public Debt Management Act. “If the government cannot pay the premium required to borrow, how will it fund the airline’s operations?” he asked.