Sri Lankan Airlines: Can it Afford to Fly?

From its very inception there have been serious concerns about the financial viability of the national carrier (Air Lanka/Sri Lankan Airlines). These become more intensified each time the need for fleet renewal comes-up. That situation has arisen again. It is important, therefore, to consider very carefully the options available. The way forward should attach priority to ensuring that an undue burden is not cast on the already over-stretched budget and balance of payments of the country. The risks associated with Sri Lanka’s budget/balance of payments deficits and debt profile are already elevated.