The government is currently exploring all potential avenues to determine the most effective strategy for restructuring the debt-ridden national carrier Sri Lankan Airlines, suggesting that options such as privatization or public-private partnerships (PPPs) are still being considered.
An expert committee is diligently studying the optimal course of action to restructure the financially distressed national carrier in line with government guidelines, Deputy Minister of Finance and Planning Dr. Harshana Suriyapperuma said.
“We are assessing what the best course of action is. We are looking at restructuring. So, the options range widely, including setting up a fund for the assets, privatization, management change or merger. We believe in exploring all options. As I mentioned, we will take the best possible course of action, we are waiting for the recommendations of the committee,” he said at the Invest Sri Lanka Forum yesterday.
He explained that the government has no pre-determined bias towards any specific option.
“We do not have a pre-determined position, so we will approach this cautiously,” he added.
When questioned about a timeline for the restructuring process, Dr. Suriyapperuma admitted that it would be challenging to give a specific timeframe. However, he confirmed that the committee has been given a deadline, but he declined to disclose it at this time.
In October 2024, after the new government came to power, it initially abandoned plans to privatize the airline, opting instead for internal restructuring measures aimed at improving profitability. However, this decision has reportedly come under recent pressure from the International Monetary Fund (IMF).
