Business

The government has yet to firm up any plan for restructuring SriLankan Airlines, the national carrier, but remains open to possible partnerships with the private sector to increase profitability, an official said yesterday. SriLankan Airlines reported a Rs. 2.73 billion loss for the year ending March 31, 2025, compared with a profit of Rs. 7.9 billion the previous year, according to its annual report, a reversal representing a decline of about 134.6 per cent compared with the corresponding period of the last year. Total revenue decreased by 10.8% to Rs. 303 billion, primarily due to lower passenger earnings and foreign exchange fluctuations. Operating Expenses: Operating expenses fell by 11.7% to Rs. 276.3 billion, but these cost reductions were not enough to offset the drop in income. Asked for a comment on the government's plan in the next annual budget for the revitalisation of the airline, its Chairman, Sarath Ganegoda said there could be some measures, but he could not comment on behalf of the government. In response to a question whether there could be any plan for partnership with the private sector, he said, "We remain open for such a partnership to increase profitability." The government is required to reform the state institutions under the IMF programme. The previous government initiated steps to restructure the national carrier, but there was no taker from the private sector at that time. Later, the plan was abandoned. The current government has made some budgetary interventions to ease the debt burden of the air