SriLankan Airlines recorded a loss before tax of Rs. 35.6 billion in the first three months of the 2026/27 financial year, according to the Ministry of Finance.
The figure appears in the ministry’s Mid-Year Fiscal Position Report. It shows the national carrier earned revenue of Rs. 82.8 billion in the quarter, compared with Rs. 62.6 billion in the same period of the previous financial year, a rise of about 32 percent.
Spending rose faster. Expenditure increased by 40.4 percent, from Rs. 67.8 billion to Rs. 95.2 billion.
The report says a 93 percent increase in aviation fuel costs, attributed to the ongoing conflict in the Middle East, was the main reason for the sharp rise in spending. The airline recorded an estimated operating loss of Rs. 12.5 billion for the quarter, and foreign exchange pressures added to the pre-tax loss.
The ministry also named structural weaknesses, liquidity constraints, high maintenance costs and large debt obligations as major challenges for the airline’s financial sustainability.
Background
SriLankan Airlines is owned by the Government of Sri Lanka, and its finances therefore affect public money as well as the airline’s own accounts. The carrier has carried heavy debt for years, and the state has repeatedly stepped in to support it.
The latest report records two such steps. After a USD 175 million loan was restructured, a restructured banking liability of USD 126.5 million was transferred to the Government’s debt stock on 20 March. The Government also provided a further USD 30 million to meet the airline’s short-term financing needs.
The quarter covers the first three months of the financial year. The report describes fuel as the biggest single reason for the jump in costs, and links the price rise to the Middle East conflict.
The ministry’s report also points to concerns over the airline’s long-term financial sustainability and its impact on public finances.
What it means
Because the airline is state-owned, the losses and the support payments it needs are part of the public finances. Money taken on to the Government’s debt stock for the airline’s liabilities is money the Treasury must service.
For travellers, including the many Sri Lankans who fly to and from the Gulf, Europe and Australia, the figures show how heavily the cost of fuel weighs on airline operations. The report does not say whether fares or schedules will change. Passengers can check current fares and services with the airline directly.
Revenue growth of about 32 percent did not offset the rise in spending, which means that even higher earnings left the carrier with a large loss in the quarter, according to the ministry’s figures.
