SriLankan Airlines’ ownership should remain local, despite growing foreign interest: CEO

The Chief Executive Officer (CEO) of SriLankan Airlines Richard Nuttall states that as Sri Lanka’s economy recovers and tourism returns, SriLankan Airlines is benefiting from an operationally profitable period, marking three years of consistent performance. Nuttall emphasized that the airline is now focusing on expanding its fleet and services to accommodate rising demand.

In a keynote interview at the Aviation Festival Asia 2025, Nuttall shared that SriLankan Airlines is currently working on a business plan that aims to double the size of the airline within the next five years. 

Nuttall explained that, in the short term, the airline plans to lease aircraft as they become available, noting that competition in the leasing market has driven up costs. He acknowledged the importance of planning for the long-term, especially considering the need to replace the airline’s aging fleet, particularly the A330s.

The airline’s initial focus will be on increasing the frequency of flights to existing destinations, Nuttall expressed, pointing out that the competition in the region has intensified, with airlines from Southeast Asia doubling their capacity to Sri Lanka over the past year. 

Nuttall underscored the importance of tourism to both SriLankan Airlines and the country’s economy, noting that tourism is one of the largest earners of foreign currency and a significant employer and that in turn, the SriLankan Airlines play a key role in Sri Lanka’s tourism industry.

He added that as the primary carrier for nearly 40% of Sri Lanka’s incoming tourists, the airline plays a critical role in the country’s tourism promotion efforts.

“We are the biggest single promoter of tourism to Sri Lanka,” Nuttall said. The airline’s marketing initiatives, which focus on promoting Sri Lanka as a destination rather than just the airline itself, are a key part of this effort. Nuttall also highlighted the airline’s digital presence and collaborations with local tour operators to boost Sri Lanka’s visibility in the global market.

“We are the only organization with a name that people recognize and we’ve got a brand that’s actually much bigger than the airline for historical reasons. We have people on the ground in all of the countries that we fly. If you watch SriLankan advertising it’s much more about the country than it is about the airline.”

“I mean if you look at our inflight safety video, I think it’s got more hits than any other Airlines safety video but it’s all about views from the island - it’s spectacular. So, you know what we really do is we promote Sri Lanka”, he added.

Strategic Position and Regional Connectivity

Nuttall emphasized SriLankan Airlines’ geographical advantage, noting the airline’s strategic location in the Indian Ocean. The airline serves as a natural hub for flights connecting India, East Africa, and Southeast Asia. This position allows SriLankan Airlines to tap into growing regional demand, especially as the Indian market experiences significant growth.

“I’ve worked for eight Airlines, it’s incredibly frustrating because the opportunity SriLankan has is massive. We are in a unique position, with our location allowing us to feed traffic from India and East Africa into Asia and beyond,” Nuttall explained. 

He expressed confidence that the airline’s role in regional connectivity, particularly in serving as an alternative to Gulf carriers, will continue to be an asset.

Ownership and Investment Considerations

When asked about the possibility of a strategic partnership, Nuttall confirmed that tourism is crucial to Sri Lanka’s national interests, and thus, the ownership and management of SriLankan Airlines should remain within Sri Lankan hands. However, he acknowledged that the airline is exploring different options for securing future investment, which may include public-private partnerships or even stock market listings.

“It’s strategically important for Sri Lanka and therefore the control should be within Sri Lanka. So I think the view is that as far as possible that investment should be Sri Lankan. Now, the debate is going on at the moment as to how that actually operates. Is it the airline, is it subsidiaries, is it government money, is it public private partnerships, is it to go to the stock market”, Nuttall explained.

“Decisions have not been made on that, but there are options and because of the growth of tourism and the growth of foreign airlines, the multiples are much more favourable than they would have been two years ago. So there are more options on the table, but the plan at the moment is as far as possible to keep the ownership and management within Sri Lanka,” he said.

Looking Forward

With the airline’s recovery in full swing, Nuttall is focused on SriLankan Airlines’ growth, aiming to expand its network, improve flight frequency, and invest in fleet modernization. Despite the challenges, Nuttall remains confident that with the right investment, SriLankan Airlines can significantly improve its position in the coming years.

“We are moving in the right direction,” Nuttall said, adding, “With the growth of tourism, the increasing demand for air travel, and our unique position in the market, we are well-placed for a strong future.”

“This Airline could be in a really different place in a few years with the right investment”, he signed off.