SriLankan Airlines has reported a loss of Rs. 2.73 billion for the financial year ended March 31, 2025, reversing last year’s profit of Rs. 7.9 billion. The turnaround marks a 134.6 percent year-on-year decline in performance, according to the carrier’s latest annual report.
The national airline’s revenue fell 10.8 percent to Rs. 303 billion from Rs. 339.6 billion a year earlier, largely reflecting reduced passenger earnings and currency fluctuations. Operating expenses also declined by 11.7 percent to Rs. 276.3 billion, but cost savings were insufficient to offset the drop in income.
Total assets contracted by 6.1 percent to Rs. 189.2 billion, down from Rs. 201.6 billion in the previous year, while shareholders’ funds remained negative at Rs. 379.5 billion — a marginal 0.6 percent increase from last year’s position.
Acting Chief Executive Officer and Group Chief Financial Officer Yasantha Dissanayake attributed the loss mainly to unexpected aircraft engine repair costs amounting to Rs. 2.2 billion and high net finance charges of Rs. 31.6 billion. He noted that passenger revenue declined by 15 percent year-on-year to Rs. 234.5 billion, primarily due to the appreciation of the Sri Lankan rupee during the 2024/25 financial year, which affected foreign-currency earnings.
Despite the overall downturn, the airline recorded a 16 percent increase in other revenue to Rs. 27.1 billion, supported by stronger performance in ground handling and ancillary services for international carriers operating to and from Sri Lanka.
The airline’s management said it remains focused on operational efficiencies and strategic restructuring to navigate current financial challenges while positioning the company for long-term sustainability.
