SriLankan Airlines Chairman Ashok Pathirage.
Long-running efforts to privatize SriLankan Airlines are poised to reach a new stage as a deadline approaches for external parties to lodge “expressions of interest” in the island nation’s flag-carrier.
The privatization process is being managed by the State-Owned Enterprise Restructuring Unit (SOERU), which is working under the Sri Lanka finance ministry. Expressions of interest must be lodged by April 22.
Efforts to wholly or partly privatize loss-making SriLankan Airlines have been attempted for many years. In September 2023, the country’s finance ministry issued what it described as an “investment opportunity teaser,” saying it wanted to divest the airline to a strategic investor.
The government revealed the airline’s assets and noted the country’s proximity to India, which the ministry said is due to become the world’s largest air transport market by mid-century. The ministry suggested that SriLankan Airlines’ Colombo hub could connect main and secondary Indian cities with points throughout southeast Asia and Australia, areas with large Indian diaspora.
Meanwhile, the airline is acquiring equipment in the leasing market. The carrier has acquired two Airbus A330-300s from lessors Orix Aviation and Aergo Capital.
“The lease period is eight years, and we anticipate the aircraft to join SriLankan Airlines’ fleet by the fourth quarter of 2024,” SriLankan Chairman Ashok Pathirage told Aviation Daily. He added the aircraft would be acquired on dry leases.
“The new aircraft are replacing those that have exited the fleet upon lease expiration,” Pathirage said. “Prior to the pandemic, SriLankan Airlines boasted a fleet of 27 aircraft, but three were returned amid the pandemic, with an additional seven following suit as leases reached their end. Now, we are happy to announce that we have been given the green light to replace these 10 aircraft.”
Pathirage said that the airline had made a loss of LKR73.62 billion ($244 million) for its fiscal year from April 2022 to March 2023, according to audited accounts. However, this figure included an exchange loss of LKR63.83 billion from the depreciation of the Sri Lanka rupee, which is seen only in local currency accounts.
“Further, the company has recorded a profit of LKR1.13 billion from April 2023 to December 2023, according to unaudited management accounts,” Pathirage said.
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