SriLankan Airlines gets Rs.25.2 bn capital infusion from the government
View(s):SriLankan Airlines, which is scouting for a partner to either manage or invest in the debt-ridden state carrier, has received Rs. 25.2 billion through a capital infusion by the government in December 2025.
Advertisements have also been placed to appoint a new Chief Executive Officer (CEO) after SriLankan Airlines CEO Richard Nuttall stepped down at the end of April 2025 to become the President of Philippine Airlines.
In a statement last week, announcing the holding of an extraordinary general meeting of shareholders on March 5 at the BMICH in Colombo, the airline said the state bank debt restructuring was completed successfully in December, and the company received its first tranche of capital from the restructuring package on December 29 and 30. This included the initial instalment under a five-year biannual repayments plan and an upfront settlement of the interest differential totalling Rs. 25.2 billion. The funds were credited directly to the company’s bank account and used in full to clear the outstanding state bank debt, the airline said. The special shareholders’ meeting is to increase the stated capital of the company to allocate shares to the value of the latest capital infusion by the government.
In its last results, the group, which includes the airline and the catering subsidiary, reported a loss of Rs. 2.7 billion in the financial year ending March 31, 2025 against a profit of Rs. 8 billion in the previous year. Group revenue also dropped to Rs. 303 billion from Rs.339 billion in the same periods.
The Government has a 99.78 per cent stake, EPF 0.09 per cent and others 0.13 per cent. The current total number of shares – 2,086,492,255 will increase to 2,338,732,571 and the increase distributed accordingly to the shareholders if they chose to subscribe to these shares.
The Board of Directors has resolved that the shares to the government shall be issued at a par value of Rs. 100 per share and that in the opinion “of the Directors such consideration is fair and reasonable to the company and to all existing shareholders”.
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