SriLankan seeks LKR 10 billion as govt eyes PPP model

Dhaka: Sri Lanka's government is moving forward with plans to introduce a public-private partnership (PPP) model for SriLankan Airlines, said the country's Aviation Minister Anura Kuranathilake.

Speaking during a televised discussion, the minister acknowledged that sustaining the national carrier through taxpayer funds was becoming increasingly unsustainable.

He revealed that approximately LKR 90 billion is expected to be allocated to the airline up to 2030, at nearly LKR 30 billion annually. The airline has also separately requested an additional LKR 10 billion to continue operations.

"This cannot continue forever. It is unfair because even people who have never seen an aircraft are contributing through their taxes to maintain the airline," Kuranathilake said.

The government has decided to pursue the PPP model and is preparing investment proposals to attract private investors. An institution will be tasked with managing the investor process, with the minister expressing confidence that investments could be secured within this year.

However, Kuranathilake clarified that full privatization is not on the table. He emphasized the importance of retaining some level of state involvement, citing SriLankan Airlines' role in repatriating Sri Lankan students stranded in China during the COVID-19 pandemic and arranging emergency flights for schoolchildren stranded in India following a highway accident.

The government hopes to retain existing state assets within the airline while bringing in private investment under a joint partnership structure.