{"id":153731,"date":"2025-06-04T04:04:14","date_gmt":"2025-06-04T04:04:14","guid":{"rendered":"https:\/\/websitedesigns.com.au\/elankanew\/?p=153731"},"modified":"2025-06-04T04:04:14","modified_gmt":"2025-06-04T04:04:14","slug":"why-has-the-national-carrier-failed-and-will-it-ever-recover-by-ceylon-today-may-29-2025-by-upul-dharmadasa","status":"publish","type":"post","link":"https:\/\/websitedesigns.com.au\/elankanew\/why-has-the-national-carrier-failed-and-will-it-ever-recover-by-ceylon-today-may-29-2025-by-upul-dharmadasa\/","title":{"rendered":"Why Has the National Carrier Failed and Will It Ever Recover? By Ceylon Today – May 29, 2025 By Upul Dharmadasa"},"content":{"rendered":"

Why Has the National Carrier Failed and Will It Ever Recover? -By Upul Dharmadasa<\/strong><\/span><\/h2>\n

\"Why<\/p>\n

By\u00a0Ceylon Today<\/a>\u00a0<\/span><\/p>\n

Having years of mounting debt and government mismanagement SriLankan Airlines continues its downward spiral, with little hope of recovery in sight. Successive governments have failed to make bold, strategic decisions to turn the airline around, instead dragging the issue along with half-hearted attempts at privatisation that ultimately yielded no results.<\/span><\/p>\n

Efforts to sell off the national carrier have been unsuccessful, largely because the government insisted on retaining control of profitable units like SriLankan Airlines\u2019 ground handling and catering services. No serious investor was willing to absorb the burden of a failing airline while being denied access to its only viable revenue streams.<\/span><\/p>\n

The airline\u2019s persistent inefficiency and poor management due to the Government involvement have left no option but to settle massive debt using taxpayers\u2019 money.<\/span><\/p>\n

Officials now claim that the airline must operate independently without expecting further financial support from the State \u2014 A promise made without any clear plan of execution.<\/span><\/p>\n

Will Sri Lanka ever learn from its past mistakes and take the hard decisions necessary to save its national carrier? The signs so far are far from encouraging.<\/span><\/p>\n

We had warned that the aviation industry is unlikely to recover given its long history of hardship and mismanagement.<\/span><\/p>\n

When Air Ceylon ceased operations in 1978, it owned four aircraft \u2014 a DC-8, a Trident, and two Avros. Even back then, Air Ceylon was ridiculed as a money<\/span><\/p>\n

-losing State entity, much like how SriLankan Airlines is viewed today.<\/span><\/p>\n

Did any government official over the past 77 years thoroughly investigate the root causes behind the national carrier\u2019s losses or identify those responsible? We lost nearly half a billion US dollars due to bilateral aviation agreements signed after 1980. In contrast, those signed before 1980 by General Sepala Attygalle were highly favourable to Sri Lanka. He had the expertise and experience to negotiate successfully on behalf of the country.<\/span><\/p>\n

After his retirement, however, the government began sending inexperienced officials to these crucial aviation industry negotiations \u2014 a practice that continues to this day.<\/span><\/p>\n

The Civil Aviation Authority of Sri Lanka (CAASL) was established under the guidance of the International Civil Aviation Organization (ICAO), headquartered in Canada, with the intention of operating independently, outside the direct control of the government \u2014 much like the structure of the national cricket board. However, over time, successive ministers, lacking a proper understanding of the aviation sector and the specific role of CAASL, began treating it as a conventional government entity. As a result, undue influence from line ministries and secretaries compromised the organisation\u2019s governance.<\/span><\/p>\n

For a long time, CAASL has been losing qualified staff who monitor the EJ tax.<\/span><\/p>\n

This is the sole income of CAASL apart from a few other insignificant avenues. This tax is collected from the type of tickets identified in the industry as SOTO (Sold outside and ticketed outside Sri Lanka) which has accounted for approx.\u00a0Rs 2 bn annual income. CAASL\u00a0is lacking the manpower with brain drain due to not keeping with ICAO-guided remuneration, subsequently not having an electronic mechanism to monitor the EJ income.<\/span><\/p>\n

When CAASL was created originally following the 1997 ICAO Audit, it was changed from a department to an authority adopting the guidelines in accordance with ICAO.<\/span><\/p>\n

With a unique autonomy granted by the Parliamentary Act No. 34 of 2002 of the Democratic Socialist Republic of Sri Lanka, the Act clearly specified under Part II, Powers, Functions and Duties of the Authority Section on Page No. 6 item T as follows:<\/span><\/p>\n

During my period in CAASL with the leadership of the Vice Chairman at the time, Amith Wijesuriya and the Director General P. A. Jayakantha, I followed the Act precisely to the best of my abilities. CAASL Board is empowered by the Act to retain the qualified staff by paying the industry standard salaries without treasury approval according to the Civil Aviation Act passed in 2002 but still the Board lives in the Stone Age referring to Circulars issued by various government organisations. The reason could be due to a lack of understanding of the Civil Aviation Act passed by the Government in 2002.<\/span><\/p>\n

The Act is the most-powerful tool with CAASL operations but, due to its Board not making the rightful decisions, today we see most of the staff is dissatisfied and leave for private sector or overseas jobs. Although every sector of the government is vital, the Aviation industry has a unique appearance globally, hence until we pay the \u2018aviation industry\u2019 salaries in the Sri Lankan aviation industry will face detrimental results. Especially not to forget that CAASL is regulating a vast industry in Sri Lankan scope and we are grooming unhappy, frustrated hard workers who are underpaid; further, once they travel for overseas jobs these professionals are paid the highest salaries.<\/span><\/p>\n

I understand that we cannot pay \u2018overseas salaries\u2019 but if the CAASL staff is paid at least the industry-stipulated salary and recognises the contribution of the staff regulating a lucrative, highly sophisticated, massive industry in Sri Lanka you may mitigate the exodus to some extent.<\/span><\/p>\n

Since the PTA fees were relinquished in 2012 the current EJ tax was also created by a CAASL staff Member named Nayoma De Silva.<\/span><\/p>\n

From 2012 to the present the government of Sri Lanka has generated over Rs 25 bn in revenue through a unique idea by this staff member; did they ever think of rewarding her for the unique idea created and being innovative or a financial reward? Only LKR 100,000 was offered to her at the time. So will Sri Lanka ever create a \u2018Bill Gates, Mike Zuckerberg or Steve Jobs\u2019? I strongly doubt it.<\/span><\/p>\n

This erosion of independence and failure to attract or retain industry experts has become a significant setback for Sri Lanka\u2019s aviation sector \u2014 one that must be urgently addressed to restore credibility, efficiency, and growth in the industry.<\/span><\/p>\n

As far as the national carrier is concerned, the consistent decline from 1948 to the present can be attributed largely to the interference of line Ministers and Ministry Secretaries. Their direct involvement and poor decision-making have played a central role in the downfall of the airline. Government interference has consistently undermined the airline\u2019s ability to operate independently and sustainably since its inception.<\/span><\/p>\n

The line Minister and the Secretary should have no authority in the airline\u2019s decision-making process. Instead, full operational control should rest with an independent Board \u2014 similar to the structure of Sri Lanka Cricket \u2014 appointed for a fixed five-year term. The only oversight should come from a Regulatory Board focused solely on monitoring for Financial Irregularities. Operational autonomy must be fully vested in the airline\u2019s Board.<\/span><\/p>\n

I stepped down from the Civil Aviation Authority in 2023 and submitted a comprehensive report, complete with illustrations, outlining how the national carrier had lost over USD Half a Billion. This was the bulk of the loss due to misguided interventions by Ministers and Secretaries, particularly their decisions to send inexperienced officials to negotiate bilateral aviation agreements \u2014 a failure that has caused long-term, irreversible damage to the industry.<\/span><\/p>\n

This isn\u2019t the fault of the hard<\/span><\/p>\n

-working staff at the airline. The blame lies squarely with the Secretaries and line ministers who made uninformed decisions.<\/span><\/p>\n

The 2023 Report, submitted to both the Minister and the Secretary at the time, was ignored. \u201cNo one even bothered to read it.\u00a0Professionals in this industry are thriving abroad because they are recognised and fairly compensated. Unless the government wakes up and starts paying competitive salaries to the qualified experts remaining in Sri Lanka, the ongoing brain drain will push the aviation sector towards total collapse.<\/span><\/p>\n

\u201cLet the professionals do their jobs and that\u2019s the only way to save this industry.\u201d<\/span><\/p>\n

I began my career during the era of Air Ceylon before moving to the United States in 1980, where I established my first travel agency. Today, being the founder of Utravel.com, a Los Angeles-based global booking platform \u2014 the only Sri Lankan-owned travel booking engine in the world, we operate offices in the USA, Canada, India, and Sri Lanka.<\/span><\/p>\n

Trained by American Airlines at Dallas-Fort Worth, I am deeply familiar with the aviation industry across all 50 U.S. States and have travelled extensively across the globe. There are a few Certified Travel Counsellor (CTC) designations from the Institute of Certified Travel Agents in Massachusetts \u2014 a recognition awarded to just 5% of professionals in the field across the USA in addition to numerous accolades from American travel institutions, holding a Master\u2019s Degree from Teesside University in the UK.<\/span><\/p>\n

Reflecting on the trajectory of the industry since 1948, I see a sharp decline in aviation standards and management in Sri Lanka.<\/span><\/p>\n

There were a few ministers and Secretaries during my time who respected professionals and allowed them to manage the airline without interference.<\/span><\/p>\n

However, the long-term decline is primarily due to constant meddling by line Ministers and Ministry Secretaries. Approximately 90% of these Secretaries had no understanding or experience in aviation \u2014 yet they were the ones making key decisions, including the selection of those who represented Sri Lanka in bilateral aviation negotiations.<\/span><\/p>\n

It is time to stand up and say that unqualified authority has led to disastrous outcomes. The \u2018unchecked\u2019 power held by Secretaries \u2014 who lack the technical knowledge \u2014 has brought the aviation industry to its knees. I\u2019ve heard past Secretaries casually discuss critical topics like fifth freedom rights without a clue, and even question irrelevant details like \u2018Why are we serving caviar in business class\u2019?<\/span><\/p>\n

With such superficial understanding and overreach, it\u2019s no surprise that aviation professionals in Sri Lanka are seeking opportunities abroad. There are plenty of well-paid jobs overseas, and unless professionals are respected and empowered at home, the exodus will only continue.<\/span><\/p>\n

Chronic Political Interference Has Crippled Sri Lanka\u2019s Aviation Industry<\/span><\/p>\n

The frequent rotation of Ministers and Secretaries every few years has left Sri Lanka\u2019s aviation industry in disarray, Without a proper effective aviation policy on the island and with little hope for sustainable progress.<\/span><\/p>\n

What a beautiful airline we have inherited with dedicated staff, unique routes, and clear blue skies ahead but years of continued meddling by successive Ministers and Secretaries have brought the national carrier to its knees.<\/span><\/p>\n

Are there any government officials who have ever studied the success stories of global airlines? For instance, a little<\/span><\/p>\n

-known Southwest Airlines based in Texas USA\u2014 it began in the 1970s with just three small aircraft fast forward. Today, it operates a whopping fleet of 816 aircraft. Has anyone here ever examined such models or reviewed their organisational structures? I seriously doubt it.<\/span><\/p>\n

\u201cWith over 40 years in this field, I can confidently say the single most damaging factor in the decline of Sri Lanka\u2019s national carrier has been the involvement of subject Ministers and Secretaries \u2014 individuals who often have no understanding of aviation but wield enormous power.<\/span><\/p>\n

In most Western countries, politicians do not interfere with the operations of airlines or other commercially failing entities.\u00a0I am not blaming one specific government or political party. Rather, it is the culture of government interference that has led to incalculable losses. And sadly, it seems we are still on that same path \u2014 heading towards another disaster.<\/span><\/p>\n

I can recall being present during the closure of Air Ceylon, which had been in operation since 1948.\u00a0It was mismanagement that led to its downfall. Disgusted with the state of the industry, I left for the United States in 1980 and went on to enhance my aviation and travel expertise across many facets of the global industry.<\/span><\/p>\n

Sri Lanka must break the cycle to save its aviation industry<\/span><\/p>\n

\u00a0In my honest opinion, if the Sri Lankan government is truly serious about turning SriLankan Airlines into a profitable and successful venture, it must be willing to make bold sacrifices.<\/span><\/p>\n

\u00a0The new NPP government must break from the failed traditions of the past and appoint a Board composed of professionals with international industry experience \u2014 including aviation Specialists, Accountants, Sales Strategists, Engineers, IT Experts, Bilateral Experts, Involvement of CAASL Staff, etc. The practice of appointing politically affiliated individuals must come to an end if we are to move forward.<\/span><\/p>\n

You must study global aviation success stories and learn from past mistakes, rather than endlessly repeating them. Maintaining the status quo will only lead us deeper into this disaster.<\/span><\/p>\n

Some key recommendations can be<\/span><\/p>\n

Completely stop Ministerial and Secretarial interference in the airline\u2019s operations.<\/span><\/p>\n

Appoint a Director General of Civil Aviation (DGCA) with true industry knowledge \u2014 not someone chosen to fill a position but lacking the requisite expertise. \u201cWe\u2019ve already had DGCA appointments in the past that \u2018damaged\u2019 the sector.<\/span><\/p>\n

Send only qualified industry professionals to bilateral air service agreement meetings. \u201cRight now, Sri Lanka is giving away valuable route rights to other countries on a silver platter, with no tangible benefit to our national carrier.<\/span><\/p>\n

When countries send their top aviation negotiators to the table \u2014 professionals with the goal of securing at least 25% gains \u2014 Sri Lanka sends teams with little to no industry knowledge.\u00a0And when those seasoned negotiators realize who they\u2019re dealing with, they walk away with 50% or more of the deal handed to them. Why? Pure ignorance.<\/span><\/p>\n

\u00a0The real danger is this \u2014 They don\u2019t know what they don\u2019t know.\u2019 And a little knowledge is often far more dangerous than none at all.<\/span><\/p>\n

I witnessed the grounding of the iconic yellow-and-blue Air Ceylon and, like many, placed hope in the rise of Air Lanka. Today, I can only wish good luck to Sri Lanka\u2019s aviation industry \u2014 but unless real change happens now, we\u2019re heading towards yet another avoidable collapse.<\/span><\/p>\n

Good luck to the Sri Lankan aviation industry!<\/span><\/p>\n

About the Writer:<\/span><\/p>\n

Upul Dharmadasa<\/span><\/p>\n

Former Chairman, Civil Aviation Authority of Sri Lanka and a Certified Travel Counselor<\/span><\/p>\n

Click here to receive your free copy of the eLanka Newsletter twice a week delivered directly\u00a0to\u00a0your\u00a0inbox!<\/span><\/strong><\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Why Has the National Carrier Failed and Will It Ever Recover? -By Upul Dharmadasa By\u00a0Ceylon Today\u00a0 Having years of mounting debt and government mismanagement SriLankan Airlines continues its downward spiral, with little hope of recovery in sight. Successive governments have failed to make bold, strategic decisions to turn the airline around, instead dragging the issue […]<\/p>\n","protected":false},"author":3,"featured_media":153732,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"aside","meta":{"footnotes":""},"categories":[20,36066],"tags":[79983,79982],"class_list":{"0":"post-153731","1":"post","2":"type-post","3":"status-publish","4":"format-aside","5":"has-post-thumbnail","7":"category-articles","8":"category-jayam-rutnam","9":"tag-national-carrier-sri-lanka","10":"tag-srilankan-airlines-failure","11":"post_format-post-format-aside"},"yoast_head":"\nWhy Has the National Carrier Failed and Will It Ever Recover? 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