Business

‘National carrier matters, but profitability matters more’

Published

4 years ago

2022/08/15

By Sanath Nanayakkare

Delaying the privatisation of SriLankan Airlines will not help, however the steps towards privatisation of the national carrier should be taken in consultation with international experts who understand the aviation industry, Thilan Wijesinghe, Chairman and CEO of TWCorp (Pvt) Ltd., said at ‘Let’s Reset Sri Lanka –Reform Now’ conference hosted by Advocate Institute, recently.Thilan who is knowledgeable about many aspects of SriLankan Airlines’ operational outlook said so responding to a query on how debt-laden SriLankan Airlines can attract potential buyers to push a privatisation process forward.

“We need to enhance value within Sri Lankan airlines within a short term. However, some of the recommendations made to achieve this objective may become contentious; for example, extending the ground handling for a limited period of time and what sort of charges to be levied for budget carriers. We need to understand that airlines’ ground handling and catering have different valuation principles. So bundling all these together and saying that we want to attract a strategic investor won’t work. First and foremost, we must generate separate PnLs (profit and loss) in order to obtain the optimum valuations and that is a job for specialists,” he emphasised.

Elaborating on the topic he said:

“SriLankan ground handling and catering operations are the profitable ones, and then you have the bilateral routes where open skies policy applies, to China, India and Europe. What is really important is to essentially demonstrate that the government has thought through a path to profitability and present that particular forecast. It can be made with experts in order to show the potential investors that a path of profitability for SriLankan Airlines is in fact available as and when Tourism turns around.”

“Why should a State have a national airline? Data has shown that for each dollar an airline brings in as revenue from a tourist, it actually generates four dollars of benefit to that country. But can it justify the losses that Sri Lankan Airlines has been incurring? No. So the overall strategy still holds true even today for privatisation of Sri Lankan airlines. We failed in our attempt to privatise it during the government of 2015-2019 primarily on account of issues that arose due to Easter Sunday attack, and secondly, the infamous 52-day constitutional crisis after which the board and the chairman were changed. Also there were policy and administrative delays and thus SriLankan remains as an airline owned by the State to date. However, the overall privatisation strategy of the Airline remains the same. First and foremost, what should be the vision to retain and have a national carrier hopefully under private ownership in the not too distant future? So one of the key visions decided at that time was that SriLankan Airlines should follow what is called a ‘value model ‘which is something in between a legacy carrier and a budget airline while focusing on regional markets because we have to compete with Emirates and Qatar Airlines,” , he said.

“I was involved with the privatisation of SriLankan Airlines in 1998. At that time we issued requests for proposals and three bids; from Emirates, French Airlines and Korean Air. It was decided by PERC to go ahead with Emirates which made the highest offer, and thus a 44% stake of SriLankan Airlines was divested for USD 73 million on a 10-year management contract where the chairman of SriLankan Airlines would be appointed by the government and there would be certain checks and balances imposed under the management contract. Board control remained with the government particularly in order to retain the national-airline- status.”

During his presentation, he showed a slide to the audience containing SriLankan Airlines’ performance during its Emirates partnership and after the government acquired all the shares of the airline from Emirates in 2008, implying the fact that ‘a national carrier matters, but profitability matters more.”

Thilan Wijesinghe, one-time chairman of the BOI, co-founded Asia Capital PLC in the early 1990s which became Sri Lanka’s largest investment bank and stockbroker during this time, executing several landmark acquisition and IPO deals. He was also a founder director of PSIDC , a government owned company funded by the World Bank and ADB that was set up to provide long term loans for PPP infrastructure projects.

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Business

SLT-MOBITEL driving Sri Lanka’s economic resilience through digital infrastructure

Published

23 mins ago

2026/09/10

Sahan Weerasooriya

SLT-MOBITEL marks its triple triumph at the National Business Excellence Awards 2026

Corporate accolades underscore the alignment between its operational excellence and national development

In an era where national competitiveness is intrinsically tied to digital connectivity, strengthening the country’s digital backbone has become an urgent priority. Within this context, the evolving role of Sri Lanka’s leading telecommunications provider, SLT-MOBITEL, offers valuable insight into how technological infrastructure can underpin broader economic resilience.

Telecommunications and digital networks are foundational to economic transformation. By expanding high-speed broadband access, upgrading enterprise cloud capabilities, and bridging the urban-rural connectivity divide, SLT-MOBITEL helps reduce business transaction costs, streamline supply chains, and enable micro, small, and medium enterprises to reach global markets.

Recent corporate accolades further underscore this alignment between operational excellence and national development. SLT-MOBITEL’s triple triumph at the National Business Excellence Awards 2026 – winning in the Infrastructure and Utilities sector, Performance Management, and ICT Services categories – highlights its growing impact. Notably, the recognition of eChannelling’s contributions to digital healthcare reflects a broader strategic pivot toward integrated technology solutions.

“Institutional efficiency of this nature is critical for attracting foreign direct investment, as global partners increasingly assess a country’s digital maturity and systemic stability before committing capital,” noted industry observers.

Moreover, the company’s transition from a conventional telecom utility to a comprehensive digital solutions provider aligns seamlessly with Sri Lanka’s national digitalisation agenda. As the country pursues public sector modernisation, enhanced e-governance, and a competitive knowledge economy, the private sector must step up to deliver secure, scalable, and future-ready networks. Investments in data centres, cybersecurity frameworks, and advanced ICT infrastructure act as strategic buffers, ensuring that Sri Lanka’s economic apparatus remains agile and resilient amid future global uncertainties.

However, industry experts caution that while these achievements are commendable, SLT-MOBITEL still has a considerable distance to cover in fully enabling a truly digital economy.

Business

Port City Colombo strengthens Gulf investment ties at Dubai diplomatic engagement

Published

25 mins ago

2026/09/10

Sahan Weerasooriya

The panel discussion at the engagement

Port City Colombo (PCC) took a prominent role as Platinum Sponsor at the second edition of Sri Lanka Beyond Your Dreams, a high-level diplomatic and investment engagement hosted by the Consulate General of Sri Lanka in Dubai and the Northern Emirates. The event, held on 2nd September 2026 at the Hilton Dubai Al Habtoor City, brought together over 400 senior UAE-based business leaders, investors, diplomats, and institutional stakeholders, alongside Sri Lanka’s most senior government representatives.

The gathering was graced by Dr. Thani bin Ahmed Al Zeyoudi, UAE Minister of Foreign Trade, as Guest of Honour, and Vijitha Herath, Sri Lanka’s Minister of Foreign Affairs, Foreign Employment and Tourism. A high-level Sri Lankan delegation – including the Secretary to the Prime Minister, the Chairman of the Board of Investment, the Chairman of the Export Development Board, and the Director General of Commerce – underscored the government’s strong commitment to deepening economic diplomacy with the UAE.

In his keynote address, Minister Herath reaffirmed the centuries-old ties between Sri Lanka and the Arab region, emphasising the UAE’s vital role as a key economic partner. He stressed the urgency of finalising a Comprehensive Economic Partnership Agreement (CEPA) with the UAE, which would establish a robust framework to elevate trade, investment, and bilateral cooperation. Declaring Sri Lanka “open and ready for business,” he positioned Port City Colombo as the physical embodiment of this economic mission – a modern Special Economic Zone (SEZ) with a dedicated legal framework and competitive incentives, offering UAE investors a natural gateway to South Asia while maintaining strong Gulf connectivity.

Business

American Premium Water strikes Gold at Dragons of Sri Lanka 2026

Published

26 mins ago

2026/09/10

Sahan Weerasooriya

The achievements are particularly significant given that the company’s debut at the Dragons awards has resulted in four Dragons across four categories.

American Premium Water has secured four wins at Dragons of Sri Lanka Awards 2026, including three Gold Dragons and one Black Dragon, marking a significant milestone for the brand following its relaunch last year.

Part of the prestigious Dragons of Asia awards, Dragons of Sri Lanka brings the program’s regional platform to the local market, celebrating creative and effective marketing communications, with entries evaluated on strategic thinking, creativity, execution and impact. Established in 2000, Dragons of Asia is one of Asia’s premier results-driven marketing awards programs.

For American Premium Water, the achievements are particularly significant given that the company’s debut at the Dragons awards has resulted in four Dragons across four categories. In the distinction of Gold Dragons, American Premium Water was recognized across three categories including Product Launch or Re Launch, Cause, Environment or Sustainability and Creative Excellence while the Black Dragon was awarded in recognition of Small Budget.

Competing alongside leading brands and agencies in Sri Lanka, American Premium Water’s four wins demonstrate the strength and effectiveness of its recent work. Winning three Gold Dragons across three distinct categories highlights the breadth of the brand’s achievements, while the Black Dragon for Small Budget further emphasizes its ability to create meaningful impact through focused and efficient investment.