SriLankan posts pre-tax loss in first quarter despite higher revenue

Dhaka: SriLankan Airlines posted a pre-tax loss of LKR 35.6 billion in the first quarter of the 2026/27 financial year, even as its revenue rose, according to Sri Lanka's Ministry of Finance.

The figures appeared in the ministry's Mid-Year Fiscal Position Report. The airline earned LKR 82.8 billion in revenue during the period, up from LKR 62.6 billion a year earlier.

Expenditure, however, climbed 40.4% to LKR 95.2 billion from LKR 67.8 billion. The report attributed the sharp increase mainly to a 93% rise in aviation fuel costs, linked to the ongoing conflict in the Middle East.

As a result, the carrier recorded an estimated operating loss of LKR 12.5 billion for the quarter. Foreign exchange-related pressures further weighed on its financial performance.

The ministry also pointed to structural weaknesses, liquidity constraints, high maintenance costs, and heavy debt obligations as key challenges to the airline’s financial sustainability.

Meanwhile, the government has continued to support the airline. After restructuring a USD 175 million loan, a banking liability of USD 126.5 million was transferred to the government's debt stock on March 20.

The government also provided an additional USD 30 million to cover the airline's short-term financing needs.

Industry analysts said the latest figures have renewed concerns about the carrier's long-term financial viability and its burden on public finances.