Government Injects Rs. 25.2billion into SriLankan Airlenes to settle bank liabilities

SriLankan Airlines has received a Rs. 25.2 billion capital infusion from the Government following completion of its state bank debt restructuring in December 2025.

The funds were used to fully settle outstanding domestic bank liabilities under a five-year repayment plan. A shareholder meeting at the Bandaranaike Memorial International Conference Hall on March 5 will approve an increase in stated capital to reflect the infusion.

Separately, the airline has reached an in-principle agreement with bondholders on restructuring USD 175 million in Government-guaranteed bonds, including a 15% haircut. The deal is subject to Cabinet and International Monetary Fund approval.

The Government, which owns nearly 100% of the airline, says the restructuring will ease fiscal risks and support broader public debt sustainability efforts.

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