SriLankan Airlines has plunged into the red, posting a loss of Rs. 7.6 billion for the 2024/25 financial year, reversing the Rs. 3.8 billion profit it recorded just a year earlier.
The figures, revealed in the airline’s latest annual report, highlight the national carrier’s deepening financial strain as it struggles with fleet limitations, maintenance delays, and a sharp drop in passenger revenue.
Between April 2024 and March 2025, the airline’s revenue fell to Rs. 303 billion, down from Rs. 339.6 billion the previous year — a shortfall of more than Rs. 36 billion. Passenger revenue dropped 15%, from Rs. 276.2 billion to Rs. 234.5 billion, while total passenger numbers declined by 4%, to 3.5 million travellers.
Despite a rebound in tourist arrivals to Sri Lanka during the same period, the report blames the poor performance on engineering-related disruptions, maintenance backlogs, and a limited number of serviceable aircraft.
Staff and Spending Rise as Losses Deepen
The airline employed 6,071 staff during the year — 67% men and 33% women — with total employee costs climbing to Rs. 32.8 billion, up Rs. 538 million from the previous year.
SriLankan’s Group operations also took a hit, posting a loss of Rs. 2.7 billion for 2024/25, compared with a profit of Rs. 7.9 billion in 2023/24.
Concerns Over Future Viability
According to the Auditor General’s report dated 12 August 2025, the Group’s current liabilities exceed its current assets, casting “significant doubt” on the airline’s ability to continue operating without external support.
The report warns that “an uncertainty exists that may cast significant doubt on the Group’s and the Company’s ability to continue as a going concern.”
As of March 2025, the Government of Sri Lanka owned 99.77% of SriLankan Airlines, while the Employees’ Provident Fund held 0.09% and other shareholders 0.14%.
Once Profitable, Now Grounded in Debt
SriLankan’s dramatic turnaround comes just a year after it posted its first profit in over a decade. However, the renewed losses underscore the challenges facing the airline as it battles high operating costs, global competition, and a fragile recovery in regional travel.
While the carrier remains central to Sri Lanka’s tourism and connectivity ambitions, the latest results highlight the urgent need for restructuring and modernization if SriLankan Airlines is to stay airborne in an increasingly turbulent aviation industry.