News
Bankrupt Lanka looks to expand airline fleet

by Amal Jayasinghe
Cash-strapped Sri Lanka’s loss-making national carrier announced plans Thursday to lease up to 21 aircraft, just two days after the government announced a default on its $51 billion foreign debt.
The island nation is in the grip of its most painful economic downturn since independence in 1948, with severe shortages of essential goods and regular blackouts causing widespread misery.
Huge protests have called for the resignation of the government, which has begged Sri Lankans abroad to send cash home to help pay for essential imports.
Despite the ongoing crisis, state-owned Sri Lankan Airlines has unveiled plans to expand its fleet from 24 to 35 in the next three years and replace some of its ageing jets.
“Sri Lankan Airlines has issued four requests for proposal to lease up to 21 aircraft to support its long-term business strategy,” it said in a brief statement.
The announcement came after the government suspended repayment of all its foreign borrowings, ahead of negotiations for a debt restructure with the International Monetary Fund next week.
The national carrier did not say how it planned to finance the leases, with its balance sheet showing a $1.7 billion debt and a carried forward loss of $1.56 billion in March 2020.The announcement also came the same day as international ratings agency Fitch downgraded $175 million in bonds issued by the airline from C to CC, suggesting the carrier was “near default”.
Fitch said the airline’s new rating, on debt due in June 2024, was in line with Sri Lanka’s default announcement.
The IMF has repeatedly urged Sri Lanka to privatise the airline, saying it was a white elephant the country cannot afford.
The airline was profitable before the government cancelled a management agreement with Emirates of Dubai in 2008, following a personal dispute with current Prime Minister Mahinda Rajapaksa.
The carrier had refused to bump fare-paying passengers and give their seats to members of Rajapaksa’s family, who were returning from a holiday in London.
Rajapaksa removed the Emirates-appointed chief executive of Sri Lankan Airlines and made his brother-in-law Nishantha Wickremasinghe head of the company.
An earlier plan to lease eight Airbus A350 jets during Rajapaksa’s tenure is subject to an ongoing criminal investigation.
The airline’s then-chief executive Kapila Chandrasena and his wife were arrested two years ago after an international investigation found they received at least $2 million in kickbacks over the order.
News
Southern Expressway land leased to Rajapaksa allies for Rs. 10,000 – Minister

Leader of the House and Transport Minister Bimal Rathnayake told Parliament yesterday that a service area on the Southern Expressway had been leased for 99 years to individuals linked to the Rajapaksa family for just Rs. 10,000.
Responding to questions raised by Opposition MPs Rohitha Abeygunawardena and Ajith P. Perera, Minister Rathnayake also claimed that the Rajapaksa associates had obstructed the construction of several other approved service areas along the expressway.
He said that the Southern Expressway project suffered from serious irregularities, including deviations from feasibility studies, which he said led to the wastage of billions of rupees.
Highlighting specific discrepancies, the Minister pointed to the construction of two interchanges that were not part of the original expressway blueprint.
“One is at Kapuduwa, just 5 km from Godagama in Matara, serving only traffic to and from Colombo. The other is at Bedigama, 6 km from Beliatta,” he said, adding that each interchange cost over Rs. 10 million to build.
By Saman Indrajith
News
Hike in bus fares if Israel-Iran conflict results in higher fuel prices

A hike in private bus fares could be on the cards next month if global fuel prices continue to climb as a result of the ongoing Israel-Iran conflict, according to Lanka Private Bus Owners’ Association (LPBOA) President, Gemunu Wijeratne.
Wijeratne told The Island yesterday (20), that the annual bus fare revision, scheduled for the 1st of next month, could lead to a revision in fares, should fuel prices in the global market remain on an upward trajectory.
He said that while fuel prices are already high due to the prevailing geopolitical tensions, the Association is cautious about pushing for a fare increase immediately, warning that such a move could adversely affect the industry in the current economic climate.
However, Wijeratne emphasised that if international fuel prices stabilise and remain at their present levels, a fare hike may not be necessary.
“The situation is being closely monitored. We hope that the global market stabilises, but if fuel prices continue to rise, we will have no choice but to adjust fares accordingly,” he added.
By Pradeep Prasanna Samarakoon ✍️
News
Committee probing alleged abuse of power by IGP approves inclusion of two additional witnesses, currently abroad

The Committee of Inquiry investigating allegations of gross abuse of power by IGP Deshabandu Tennakoon convened for the fourth consecutive day on Thursday, under the Chairmanship of Supreme Court Justice Preethi Padman Surasena. The Committee also includes Justice W.M.N.P. Iddawala and E.W.M. Lalith Ekanayake, Chairman of the National Police Commission, the Parliament Media Division said.
It said that as of Thursday, 28 prosecution witnesses have testified before the Committee, including seven on that day (Thursday).
The Committee has also approved the inclusion of two additional witnesses, currently abroad on official duty, to testify after their return to the country on 26 June. This request was submitted by Additional Solicitor General and President’s Counsel Dileepa Peiris, and Deputy Solicitor General Rajitha Perera, representing the Attorney General’s Department.
Attorney-at-Law R.S. Weerawikrama, appearing on behalf of IGP Tennakoon, gave his consent for the two witnesses to be summoned for examination and cross-examination upon their return. The Committee granted the request.
Although initially scheduled to reconvene yesterday (20), proceedings have been postponed to Monday, 23 June, following a request by Weerawikrama to allow additional time to prepare the IGP’s defence. With the Attorney General’s Department not objecting, the Committee approved the postponement.
The next sessions will be held from 23 to 25 June, commencing at 9:30 a.m. daily. During this period, 15 witnesses are expected to testify on behalf of the Respondent IGP.The Committee will reconvene again at 2:00 p.m. on Thursday, 26June, following the conclusion of the defense’s witness testimonies.
-
Features7 days ago
As I remember, from 50 years ago: the 75-80 Katubedda Engineering Batch
-
Business1 day ago
Foreign Direct Investment records 90% Increase in First Quarter of 2025
-
Business2 days ago
The World of the Black Leopard
-
Life style7 days ago
Miss World from Thailand!
-
Features7 days ago
Writing History on Paris Clay – French Open 2025
-
Features6 days ago
When the water rises: Climate change and the future of Yala’s Mugger Crocodiles
-
News4 days ago
Senior SLAS officer succeeds Bogollagama as SL’s UK HC
-
News3 days ago
Ministry of Foreign Affairs, Foreign Employment and Tourism, accelerates digital transformation