- SriLankan Airlines is the largest airline in Sri Lanka, operating over 560 flights per week to 113 destinations in 51 countries. It has been struggling financially, posting negative cash flows and requiring government-backed loans. - The airline is controlled by the Sri Lankan government, with politically appointed leaders. It has become a significant burden on Sri Lanka's national budget and economy. - For the airline to become profitable, it needs effective leadership not influenced by politics. The CEO should have industry expertise and implement strategic restructuring without government intervention. A transformational, cost-cutting vision is required to change the airline's culture and union relationships.

1. Fantasizing National
Carrier

2. Company Profile
• SriLankan Airlines
• Member of the One world airline alliance since May 2014.
• It is currently the largest airline in Sri Lanka by number of aircraft and
destinations and was launched in 1979 as Air Lanka following the
termination of operations of the original Sri Lankan flag carrier Air Ceylon.
• Following its partial acquisition in 1998 by Emirates, it was re-branded and
introduced the current livery.
• In 2008 the government of Sri Lanka acquired all the shares of the airline
from Emirates.
• Sri Lankan Airlines operates over 560 flights per week.
• The Airline operates to 113 destinations in 51 countries
Company annual report 2019/20

4. It is an entity with public interest?
Government Enterprise ?

5. Background to the problem

6. Financial indications

7. Financial indications cont.…

8. Operational & Other indications
• Highly unionize environment
• Volatility of jet fuel prices
• Depreciation of the Rupee
• High operational expenses
• Politically appointed incapable board members
• Poor selection of operating routes.
• Paying higher lease rates for Airbuses
• Negative Cash flows & government backed 700 Mn. loans.
• Higher GOSL intervention on airline operations

9. Finally ??????
SriLankan Airline converted to a
burden on the National Budget,
Treasury and National Economy

10. Leading & Control of SriLankan Airlines(UL)
• UL is a company which GOSL has a significant control over the entity.
• Politically appointed Chairman, CEO and the Director Board.
• CEO is the public face of the entity’s leadership.
LEADERSHIP OF THE
ENTITY
TECHNOLOGY & INNOVATION
UNION PRESSURE
GENERAL PUBLIC
MACRO/MICRO ECONOMY
AVIATION INDUSTRY
STANDARDS & REGULATIONS
OPERATIONAL BOTTLE NECS
GOSL
General TREASURY
UL
CHAIRMAN
BOARD OF
DIRECTORS
CEO

11. RECENT LEADERS(CEO’s) OF UL
• Mr Manoj Gunawardena (2008-2011)
30 Years Experience in UL. Hold the position as Sales Director for Sri Lankan Airlines.
• Mr Kapila Chandrasena (2011-2015)
Former CEO Mihin Lanka Airline & Mobitel. Markertier in Profession.
• Mr Suren Ratwatte (2015-2018)
Well experienced pilot (Captain) with higher flying hours. Good knowledge taker for airbus
operations.
• Mr Vipula Gunathilake (2018 onwards)
He has started 5 year strategic plan. It consist quantitative as well as qualitative improvements to the
airline. Former board member of UL.

12. Government Intervention on leadership of the entity
• Based on the personal traits , most of the CEO’s have appointed
regardless of their competency and skills assessment.
• Task oriented /Action centered Leadership is expected from every
CEO to avoid loss making situation.
• Government failed to make any transformation other than maintaining
status quo.

13. Common leadership style in UL
• Transactional leadership style can be found with in most government
owned enterprises even in UL
Influence of a leader towards his subordinates using rewards and
punishments as a form of motivation.
Currently in UL ????
• Hidayat, S.E., Rafiki, A. and Aldoseri, M.M. (2017), "Application of leadership style in government organizations: a survey in the Kingdom of Bahrain", International
Journal of Islamic and Middle Eastern Finance and Management, Vol. 10 No. 4, pp. 581-594

14. Can the UL be transformed in
to profitable institution?
YES , IF

15. • Appointment of “ Effective Board “without political influences.
• Maintain Higher Group dynamics within the Board.
• Appointment of qualified and experienced CEO with industry
expertise, specially airline and aviation industry(Knowledge of the
business).
• Current proposed restructuring plan shall be implemented fully
without any distractions.
• Visionary leadership of Sri Lankan Government will make this effort
more flexible.
• Government undue intervention for the airline operations shall come
to zero level.

16. What kind of leadership UL needs ?
• Mix of Charismatic & Transformational leadership style is required
• Leader shall push the institution for cost leadership vision
• He shall lead the team of UL by best examples.
• Lots of change management skills are needed to convert this 72 years
old culture.
• Higher interpersonal skills to change the unionize environment into
flexible and management supporting.
• Service innovation culture

17. What kind of leadership cont……
• In-depth business expertise
• He shall promote the business culture of separate entity without
support of GOSL. This may be going for public listed company (PLC)
with more public accountability.

18. Any Questions ???