SriLankan Airlines can earn US$1 billion in revenue within three months if the right leadership and policies are implemented, said former Civil Aviation Authority (CAA) chairman Upul Dharmadasa.
Speaking to Mirror Business, Dharmadasa outlined a strategy for the revival of the loss-making national carrier, emphasizing the need for professionals who have left the country, expanded international routes and are skilled in digital innovation to increase efficiency and revenue.
“Sri Lankan Airlines is an airline that can earn over US$1 billion in three months. To achieve this, we need the right aviation professionals and policy continuity,” said Dharmadasa.
Dharmadasa pointed out that expanding key routes and improving asset utilization could be significant benefits for the airline. He particularly highlighted the opportunity to benefit the global Sri Lankan diaspora by operating flights to underserved destinations in North America.
“We can easily operate flights to these destinations that serve expatriates and potential tourists. If we establish the right connections and schedules, this will create a strong revenue stream,” he added.
He pointed out that Sri Lankan Airlines could explore opportunities in Caribbean countries, where expatriate communities struggle to find affordable air connectivity. The reason is that a large number of expatriates work in the hospitality sector and air connectivity for them remains challenging.
Therefore, he proposed a Miami-Colombo route to serve these expatriates in the Caribbean as well as Sri Lankan expatriates in the United States.
Dharmadasa suggested that the Cabinet adopt a policy similar to the Fly America Act in the United States, which would give priority to government officials, including diplomats, when traveling abroad. In the United States, according to a federal law passed by Congress, government-funded travel, including by government employees, contractors and grantees, must use US airlines whenever possible.
He also criticized the authorities’ decisions, particularly regarding the granting of fifth freedom rights to foreign airlines in 2024 and the granting of benefits to Middle Eastern airlines. Dharmadasa argued that these policies cost SriLankan Airlines about US$500 million on the Colombo-Muli route.
“The previous government granted fifth freedom rights to the UAE, resulting in SriLankan Airlines losing around US$500 million,” he said.
Policy compliance was another key concern for Dharmadasa, who stressed that frequent changes in regulations and leadership had hampered the airline’s ability to implement long-term strategies.
A key part of Dharmadasa’s proposal is to migrate to New Distribution Capability (NDC), a digital framework that allows airlines to sell tickets directly, bypassing traditional third-party booking systems.
“If SriLankan Airlines had fully implemented National Distribution Capability (NDC), we would not be paying millions in commissions to foreign ticketing platforms,” he said, emphasizing that modernizing sales channels could significantly reduce costs and increase direct revenue.
Dharmadasa also pointed out the inefficiencies in the airline’s credit card payment systems and suggested that a local payment processing system would help reduce currency exchange losses. According to him, the government should absorb SriLankan Airlines’ legacy debt, as announced by the new government.
During one of the most challenging periods in the history of the global and Sri Lankan aviation industry, Dharmadasa assumed the position of CAA Chairman in 2020, leading the successful repatriation of 138,000 Sri Lankans stranded around the world at the height of the pandemic.
Dharmadasa is considered one of Sri Lanka’s most senior aviation professionals, having over 45 years of experience in the aviation and hospitality sectors, starting with the national carrier. He began his aviation career as a cabin crew member with Air Ceylon in 1975. Later, he started several tourism and hospitality businesses in the United States, and continues to promote Sri Lanka to potential American tourists across all 50 states.
