SriLankan Airlines looks to boost fleet as privatisation effort gains momentum

SriLankan Airlines will be better placed to make major long term investments in its fleet after its privatisation is completed, but in the short term the airline is looking to grow with more leased aircraft.

The airline has had more market turbulence than most in recent years. It suffered from a loss of tourist traffic due to terrorist attacks in Sri Lanka in Apr-2019, and before it recovered from that, the COVID-19 pandemic emerged to decimate demand further.

Other challenges include the rapid growth of Indian LCCs in its neighbouring market, and competition from Gulf airlines.

The SriLankan government has been attempting to divest the financially troubled airline for some time, and finally appears to be making progress towards this goal.

Although SriLankan has limited options while the privatisation process is under way, it is doing what it can to increase capacity. It is also having to contend with engine availability issues that have caused many of its narrowbodies to be grounded.