President Anura Kumara Dissanayake says SriLankan Airlines continues to impose a significant financial burden on the Treasury, with billions of rupees in public funds required to sustain its operations.

Delivering the 2027 Budget speech in Parliament, the President said a special committee had been appointed to examine the airline's substantial financial losses and identify possible solutions.

He said the committee's report would be presented to Parliament, adding that the Government needed to reconsider the future of SriLankan Airlines in view of its continuing financial burden on public finances.

He stressed that the Government needed to seriously consider whether the Treasury could continue to bear the financial burden of SriLankan Airlines, revealing that the airline's accumulated losses stood at Rs. 528 billion.

The President also highlighted the Government's efforts to increase state revenue while reducing expenditure, particularly interest payments.

He said increased revenue from taxation and foreign remittances had contributed significantly to strengthening government finances and achieving a primary surplus.

President Dissanayake said the Government's broader objective was to manage the country's current economic challenges while laying the foundation for a better future for the next generation.

He noted that the country had progressed from economic stabilisation towards the next phase of economic transformation, following what he described as two years of efforts to restore economic stability amid significant domestic and international challenges.

The President stressed that the 2027 Budget proposals were interconnected and formed part of a collective national programme aimed at the country's development.

Referring to external economic pressures, he highlighted the impact of rising global oil prices amid the ongoing conflict in the Middle East. He said the Government had provided concessions amounting to Rs. 147 billion to cushion the impact of higher fuel prices on the public.

He also disclosed that an estimated USD 3.4 billion had been spent in connection with the damage caused by Cyclone Ditwah and subsequent reconstruction efforts.

The President further highlighted the potential economic challenges arising from the El Niño phenomenon.

Addressing public sector reforms, he said Sri Lanka did not require an oversized state machinery but an efficient public service capable of responding effectively to the needs of the people.

Recalling the mandate received by the NPP Government two years ago, President Dissanayake said the public had entrusted it with the responsibility of building a better nation.

President Dissanayake commenced delivering the 2027 Budget speech in Parliament at 1.40 p.m. today. The 2027 Budget is the third presented by the National People's Power-led Government, with the Cabinet of Ministers having approved the proposals earlier today.