The Cabinet has approved a five-year contract worth US$ 25.17 million awarding Honeywell International the repair and maintenance of Auxiliary Power Units (APUs) used by SriLankan Airlines, the government announced after Monday’s meeting.
Cabinet Spokesperson Vijitha Herath said Honeywell submitted the lowest bid out of six received through an International Limited Competitive Bidding Procedure, and the Standing Cabinet Appointed Procurement Committee recommended the award. The proposal was tabled by Ports, Shipping and Aviation Minister Anura Karunathilake.
APUs provide electrical power and air conditioning to aircraft on the ground without running the main engines, and are essential for routine flight operations. The national carrier does not currently have in-house capability to repair these units, which must be removed and shipped abroad for overhaul.
The award extends a long-standing relationship between Honeywell and SriLankan Airlines. The previous deal — a two-year contract worth US$ 15.3 million — was approved in 2023, and the new five-year arrangement reflects continuing fleet maintenance requirements.
The contract approval comes as SriLankan Airlines continues to navigate financial restructuring. The airline concluded a bond restructuring deal in March 2026 with over 99% creditor uptake, and ongoing maintenance commitments are part of its plan to keep the existing fleet flightworthy while a long-delayed privatisation process moves forward.
The Honeywell award was one of several decisions taken at the April 7 Cabinet meeting, which also covered fuel subsidies for the fisheries sector and a digital public sector platform.
