Sri Lanka has formed a high-powered committee to carry out a sweeping strategic review and restructuring of Sri Lankan Airlines, as the government seeks to ease the state-owned carrier's long-running fiscal burden and restore its commercial viability.

The Cabinet of Ministers approved the committee's formation, which will be chaired by Dr. Hans Wijayasuriya, Senior Presidential Advisor on Digital Economy. The committee includes Senior Presidential Economic Advisor Duminda Hulangamuwa, financial and corporate strategy expert Deshal De Mel, and investment banking and mergers-and-acquisitions specialist Dumith Fernando.

The panel will also include senior representatives from the Finance Ministry and the Ministry of Transport, Highways, and Urban Development—or nominees from the Civil Aviation Authority—along with the Chairman of SriLankan Airlines. Legal experts specialising in corporate, aviation, and public law, as well as aviation industry specialists, are to be appointed to the committee in due course.

The restructuring exercise will be conducted in partnership with the International Finance Corporation (IFC), the private-sector financing arm of the World Bank Group, which is acting as transaction advisor.

The committee has been mandated to conduct an independent assessment of the airline's strategic direction, recommend restructuring models, evaluate future options, and identify the most appropriate path forward in line with government policy objectives. It will also provide oversight during the implementation phase of whichever strategy is selected.

SriLankan Airlines has long been a drain on state finances, accumulating significant losses over the years. The government said the move reflects the urgent need for a comprehensive review of the carrier in the context of Sri Lanka's broader macroeconomic challenges—the country underwent a severe economic crisis in 2022 and is currently navigating an IMF-backed recovery programme.

The government will formally dissolve the committee only after the review and restructuring process is complete.

Source: Daily Mirror Sri Lanka