Loans Were for Looting, Not Flying: Govt Explains Airline’s Financial Woes

COLOMBO (News 1st); Deputy Minister of Finance and Planning, Dr. Harshana Suriyapperuma, has strongly defended the government’s approach to managing SriLankan Airlines, attributing the airline’s current financial distress to past corruption and mismanagement under previous administrations.

Responding to criticism from opposition MP Dr. Harsha de Silva, Dr. Suriyapperuma accused former political leaders and affiliated business interests of saddling the airline with unsustainable debt. “These debts were not incurred for operational needs but to facilitate corruption and personal gain,” he said during a parliamentary session.

He emphasized that the airline’s losses are largely due to legacy financing costs and foreign currency translation losses, not operational inefficiencies. “SriLankan Airlines deals primarily in foreign currency. A significant portion of the reported losses stems from currency translation and the cost of past borrowings,” he explained.

Dr. Suriyapperuma also highlighted the government’s broader reform agenda, including the repeal of the Foreign Loans Act and the introduction of new legislation aimed at improving transparency and governance in state-owned enterprises (SOEs). “We are creating a culture where loans are taken not for theft, but for investment in the future of this country,” he said.

He assured Parliament that the new legal framework would include robust provisions to ensure accountability, transparency, and lender confidence. “The processes are being streamlined to ensure timely approvals and responsible borrowing,” he added.

The Deputy Minister’s remarks come amid growing public scrutiny over the financial health of SriLankan Airlines and the government’s decision to retain full ownership without inviting private investment.