SriLankan Airlines posts Rs 35.6 billion pre-tax loss in first quarter

SriLankan Airlines recorded a pre-tax loss of Rs 35.6 billion in the first three months of the 2026/27 financial year, the Ministry of Finance has said.

According to the ministry's Mid-Year Fiscal Position Report, the national carrier earned revenue of Rs 82.8 billion during the period, up from Rs 62.6 billion in the previous financial year. Its expenses, however, rose 40.4 percent, from Rs 67.8 billion to Rs 95.2 billion.

A 93 percent jump in aviation fuel prices caused by the continuing conflict in the Middle East was the main driver of the cost surge, the report said. That left an operating loss of Rs 12.5 billion for the quarter, while foreign exchange pressures also hurt financial performance.

The ministry pointed to structural weaknesses, liquidity constraints, high maintenance costs and debt burdens as continuing challenges for the airline.

The airline has been the subject of repeated restructuring discussions over the years, with successive governments weighing options ranging from debt restructuring to private investment. The ministry said it continues to monitor the carrier's performance closely.