The Hon. Anura Karunathilaka

¶ 01 Hon. Member, to clarify, your question is whether it is a public-private partnership model, a management committee, or continued State ownership. Discussions are ongoing at Ministry and Finance levels; no definitive agreement has been reached yet on the business model.

¶ 02 As at 2026.01.31, debt obligations were:

¶ 03 - Treasury Guarantee: LKR 152,010.86 million (USD 491.23 million) - Aircraft leases: LKR 111,865.34 million (USD 361.50 million) - Operating lease liabilities - Bank loans and facilities: LKR 22,626.25 million (USD 73.12 million) - Intercompany liabilities: LKR 21,022.25 million (USD 67.93 million) - Total: LKR 307,524.70 million (USD 993.78 million)

¶ 04 Pursuant to Cabinet Decision dated 2025.10.07 (Cabinet Memorandum No. 25/1884-804/122-1: “Conclusion of the Tripartite Agreement for the Settlement of Selected Debts of SriLankan Airlines”), future payments for the next five years are to be made semi-annually with interest at 6% for USD debt and SLFR+1% for LKR debt.

¶ 05 Bank of Ceylon total debt as at 2025.04.30: - USD 106,946,105.94 - LKR 13,256,075,342.47

¶ 06 People’s Bank total debt as at 2026.04.30: - USD 111,109,814.13 - LKR 20,296,032,921.72

¶ 07 First instalments paid in Dec 2025: - BOC: Rs. 7,695,297,873.54 - PB: Rs. 8,767,324,353.48

¶ 08 First USD instalments released: - Total USD 28,456,297.57 (Rs. 8,813,202,766.03 at Rs. 309.7101/USD): - BOC: USD 13,956,466.83 - PB: USD 14,499,830.74

¶ 09 From 2026 onwards, outstanding obligations: - Bank of Ceylon: LKR 11,930,467,808.22; USD 96,251,495.34 (interest) - People’s Bank: LKR 18,266,429,629.55; USD 99,998,832.72 (interest) - Total: LKR 30,196,897,437.77; USD 196,250,328.06 (interest)

¶ 10 No separate entity named SriLankan Ground Handling Limited has been established; ground handling operates under SriLankan Airlines. SriLankan Catering Limited maintains separate audited accounts.

¶ 11 Net profit/(loss) by year (LKR million): - 2020/21: SLA (45,231.46); SLC (909.23) - 2021/22: SLA (166,369.68); SLC 2,802.70 - 2022/23: SLA (73,621.53); SLC 4,697.21 - 2023/24: SLA 3,870.86; SLC 4,054.24 - 2024/25: SLA (7,594.56); SLC 4,859.73

¶ 12 Short-haul operations, often to India, may not cover costs when viewed in isolation. Route performance is assessed within the network connectivity model. Underperforming routes with minimal network impact are discontinued—for example, Abu Dhabi was suspended from September 2025. Measures to improve Asian route profitability include reducing business class seats, increasing economy capacity, and operating through flights to minimize losses.

¶ 13 Overall Load Factor improved from 70.1% (FY 2024/25) to 72.3% by January 2026. Some financial improvement is observed, though profitability is not yet achieved.

¶ 14 Crew-to-aircraft ratio is around 127 per aircraft; minimum staffing is maintained for essential services.

¶ 15 Passenger shares: - 2024/25 total arrivals to Sri Lanka: 4,446 thousand; via SriLankan Airlines: 1,744 thousand (39%). This share has declined from 69% (2021) to 53% (2022).

¶ 16 Projected semi-annual Treasury capital outflows for State bank debt (LKR million), assuming no change in interest and a fixed rate of Rs. 308/USD: - 30-Apr-2026: 3,318 - 31-Oct-2026: 3,005 - 30-Apr-2027: 2,596 - 31-Oct-2027: 2,272 - 30-Apr-2028: 1,885 - 31-Oct-2028: 1,538 - 30-Apr-2029: 1,154 - 31-Oct-2029: 805 - 30-Apr-2030: 432

¶ 17 Outstanding on sovereign bonds currently totals USD 188 million.

¶ 18 Regarding payment of bonuses in 2025 despite losses: while, as a principle, paying bonuses at loss-making entities is questionable, SriLankan operates under its specific statute and industrial relations context. To maintain labour peace and avoid operational disruptions, a reduced quantum compared to other entities was paid. There is no conflict with the ongoing IMF programme.