Colombo, February 15, 2026 – Sri Lanka’s national carrier, SriLankan Airlines, is planning to seek shareholder approval next month to convert Rs. 25 billion already provided by the Government into equity stakes in the airline.

The move comes as part of ongoing efforts to strengthen the airline’s balance sheet and capital structure, following years of heavy losses and repeated cash injections from the State to keep operations afloat. Analysts say converting government loans into equity could help reduce debt levels, improve financial ratios, and support future restructuring — including potential partnerships or strategic investments.

SriLankan Airlines has struggled with mounting deficits in recent years despite increases in passenger traffic, with its performance weighed down by legacy debts, weak cargo revenue and high operating costs. The carrier’s viability and strategy remain central to broader discussions on fiscal sustainability and State-owned enterprise reform in Sri Lanka’s post-crisis economic recovery.