Sri Lankan Airlines continues to suffer operating losses upwards of 10 billion LKR, as the President vows to restructure its debt.
Sri Lankan Airlines group, which is owned by the state, has lost 10.7 billion LKR in the three months to June 2025.
President Anura Kumara Dissanayake vowed last week to overhaul the country’s loss-making national airline after the government failed to find a buyer, in line with commitments under an IMF bailout.
Sri Lanka had borrowed 175 million dollars through a 5-year bond, which now has coupon arrears. The bond has a sovereign guarantee.
“The debt is now around 210 million US dollars,” President Dissanayake said. “We hope to restructure it before December.
Earlier this year, the Airlines sought Crown Court approval to halt a liquidation process initiated by creditors to the airlines.
The bond in question is guaranteed by the Sri Lankan government. Sri Lankan Airlines has come under increasing scrutiny for its financial mismanagement and mounting liabilities. Though the airline has remained operational, concerns over its solvency and the implications of sovereign guarantees have continued to generate political and public controversy.
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