Sri Lanka’s aviation sector could see the entry of two new airlines, Palyra and We Air, following initial discussions with the Civil Aviation Authority of Sri Lanka (CAASL) on their proposed operations.
According to a Facebook post by CAASL, the initial discussions were held on 7 October 2026 at the authority’s premises, with the participation of senior officials from both proposed airlines and CAASL.
The meeting was chaired by Captain Daminda Rambukwella, Director General of Civil Aviation and Chief Executive Officer, alongside Captain Lasantha Dahanayake, Deputy Director General – Aviation Safety.
Discussions focused on the airlines’ business plans, fleet arrangements, operational systems, and compliance with applicable regulatory and legal requirements. Both companies are currently at the pre-application stage of the process to obtain an Air Operator Certificate (AOC).
Under their preliminary plans, Palyra intends to establish a domestic air service network within Sri Lanka using ATR 72 aircraft. Meanwhile, We Air plans to operate international cargo services using Boeing 737-800 aircraft, targeting cargo operations across the Asia-Pacific region.
The proposed entry of the two airlines could create new opportunities for Sri Lanka’s domestic and international aviation sectors. A domestic service operated by Palyra could improve connectivity between regional destinations, while We Air’s planned cargo operations could strengthen Sri Lanka’s links with regional air freight markets.
CAASL also highlighted the potential benefits of attracting new private-sector investment to the aviation industry, including increased competition, more competitive airfares, greater utilisation of regional airports and new employment opportunities.
Separately, the Ministry of Ports and Civil Aviation is preparing preliminary plans for the development of domestic airports in Sigiriya, Trincomalee and Hingurakgoda.
Officials from Palyra and We Air reportedly expressed their commitment to advancing the certification process in accordance with international civil aviation standards.
However, both airlines remain at the pre-application stage and their proposed operations are subject to the relevant regulatory approvals and completion of the AOC certification process.
