The Hon. Anura Karunathilaka - Minister of Ports and Civil Aviation and Minister of Energy

¶ 01 Hon. Speaker, the answer is as follows.

¶ 02 1. With regard to the current status of the restructuring/privatization process of SriLankan Airlines:

¶ 03 - The restructuring of Rs. 91.3 billion in State bank loans has been completed. The first principal instalment under the five-year plan with semi-annual repayments and base interest settlement, amounting to Rs. 25.2 billion, was received in December 2025 and fully utilized to settle loans at the two main State banks (Bank of Ceylon and People’s Bank).

¶ 04 - As per the agreed framework among the Treasury, the two banks, and SriLankan Airlines, the Government of Sri Lanka will continue to make capital payments to the company in April and October each year up to 2030 for State bank loan settlements.

¶ 05 - The USD 175 million international sovereign bond guarantee is being restructured and is expected to be completed by end-2026.

¶ 06 2. On going concern status: The Auditor-General has expressed a material uncertainty casting significant doubt on the Group/Company’s ability to continue as a going concern. The Government has assured continuous support via Cabinet approval and a letter from the Secretary to the Treasury.

¶ 07 However, we do not intend to continue operations in the present manner. Discussions have commenced between the Ministry and the Treasury with potential investors to establish a viable business model.