The total loss of SriLankan Airlines has increased to Rs.12.9 billion in the first four months of 2019, while the total debt of SLA has exceeded US $750 million, the mid-year fiscal report released yesterday (01) by the Finance Ministry revealed.

“The Government is currently bearing USD 375 million and Rs.26,250 million of contingent liabilities piled up since 2014. This includes the guarantee granted for International Bonds and letters of comfort issued to obtain loans during the BIA closure in 2016.” The report added.

Therefore, it is observed that the GOSL needs to have a significant business restructuring model, owing to the high possibility for the Government to bear the loss, and also due to the high correlation between Aviation industry and the tourism sector in the country.