Sri Lanka is set to transform its struggling national airline, SriLankan Airlines, into a public-private partnership (PPP) within the year, as previous efforts to operate it solely under government management have proven ineffective, according to a government minister.
Anura Karunathilaka, the Minister of Ports, Civil Aviation and Energy, announced that the government has assigned a specific agency to prepare investment proposals aimed at attracting private partners.
The airline, which has long been identified as a significant financial liability, is currently utilizing 90 billion rupees from public funds, incurring expenses of 30 billion rupees annually until 2030, in addition to existing debts taken on by the Treasury. The minister also mentioned that the airline has requested an extra 10 billion rupees to maintain its ongoing operations.
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“This situation is not something that can be maintained over the long term,” Karunathilaka stated during an interview with the private television channel Swarnavahini. He added, “It is unfair that individuals who have never even set foot on an airplane, let alone flown, are compelled to support this through their taxes.”
In defense of not fully privatizing the airline, Karunathilaka emphasized that the government intends to keep a portion of ownership to ensure that the airline can be utilized during national emergencies. He referenced previous instances, such as the evacuation of stranded Sri Lankan students from China during the Covid-19 crisis, as justification for retaining a state interest.
“Our objective is to maintain that share as the government’s equity investment, attract private funding for the remaining portion, and operate the airline within a public-private partnership framework,” he clarified.
Responding to concerns about substantial governance delays, including the absence of a chairman and executive director for the airline, the minister assured that swift appointments are forthcoming. The process for selecting a new CEO is currently in progress, and a qualified candidate for the chairman position has already been identified.
“We have received an excellent proposal, and within a week or two, we expect to see a capable chairman appointed to SriLankan Airlines,” Karunathilaka concluded.
