By Newswire Editorial
SriLankan Airlines has recorded a loss before tax of Rs. 35.6 billion during the first three months of the 2026/27 financial year, despite an increase in revenue, according to the Ministry of Finance.
According to a report by News First, the Ministry’s Mid-Year Fiscal Position Report revealed that the national carrier generated revenue of Rs. 82.8 billion during the period, compared to Rs. 62.6 billion in the corresponding period of the previous financial year.
However, the airline’s expenditure increased by 40.4%, rising from Rs. 67.8 billion to Rs. 95.2 billion.
The report states that a 93% increase in aviation fuel costs, attributed to the ongoing conflict in the Middle East, was the primary reason for the sharp rise in expenditure.
The airline consequently recorded an estimated operating loss of Rs. 12.5 billion during the quarter, with foreign exchange-related pressures further affecting its financial performance.
The Ministry also identified structural weaknesses, liquidity constraints, high maintenance costs and substantial debt obligations as major challenges affecting the airline’s financial sustainability.
Meanwhile, the Government has continued to provide financial assistance to the national carrier.
Following the restructuring of a USD 175 million loan, a restructured banking liability of USD 126.5 million was transferred to the Government’s debt stock on March 20.
An additional USD 30 million was also provided to meet the airline’s short-term financing requirements.
The latest financial figures come amid continued concerns over the airline’s long-term financial sustainability and its impact on public finances. (Newswire)