The SriLankan Airlines Paradox: When talent cannot overcome structural failure

RECENTLY I watched a lawmaker in Parliament suggesting that Dhammika Perera should be appointed CEO of SriLankan Airlines, which prompted me to write this opinion.

- By Ali Sabry

There is a difficult but unavoidable truth that Sri Lanka must confront: the Government of Sri Lanka should not be running commercial businesses, especially in a complex, competitive, capital-intensive industry like aviation.

This is not a matter of ideology, it is a matter of reality shaped by our political culture, economic vulnerabilities, administrative constraints, and decades of hard lessons we stubbornly refuse to learn.

We are not Qatar, Singapore, or China, countries with deep sovereign wealth, stable technocratic systems, long-term policy continuity, and the ability to ring fence commercial enterprises from political interference. Sri Lanka simply does not possess those structural advantages.

Why Government businesses fail in Sri Lanka

Even a strong business struggles when forced to survive within constant election cycles, politicised decision-making, paralysing trade unions tied to political interests, policy instability, low salary structures that cannot attract top talent, and chronic underinvestment due to fiscal constraints.

In such an environment, long-term commercial success is impossible. SriLankan Airlines is the clearest example of this institutional reality.

The Emirates era: Evidence of what works

Under Emirates' management, SriLankan Airlines enjoyed board autonomy, strategic direction, commercial freedom, and insulation from political interference.

Performance improved visibly. The collapse began only after Emirates exited due to political meddling in commercial decisions.

Warren Buffett's lessons: When structure makes success impossible

Warren Buffett, with a personal net worth exceeding US$150 billion and a holding company, Berkshire Hathaway, valued at over US$1 trillion with hundreds of billions in investments and cash reserves, is admired not because he always got things right, but because he openly admits his mistakes.