The Cabinet of Ministers has approved the award of a new three-year ground handling contract for SriLankan Airlines operations at Sydney Airport to Menzies Aviation Australia Pty Ltd at a value of AUD 8.32 million, the government said on Tuesday.
The previous contract expired on April 30, 2026. Following a limited international competitive procurement process, three bids were received. The High-Level Standing Procurement Committee recommended Menzies as the substantially responsive lowest bidder. The contract commences May 1, 2026.
The proposal was presented by the Minister of Ports, Shipping and Civil Aviation. Menzies Aviation, a global ground services operator with a footprint across Australian airports, will handle ramp services, baggage and passenger services for SriLankan’s Colombo–Sydney flights — one of the carrier’s core long-haul routes and a high-volume service for the Sri Lankan diaspora.
The award lands at a transitional moment for the national carrier. SriLankan Airlines has been operating without a permanent CEO since Yasantha Dissanayake was appointed acting chief executive in March 2025, and the carrier is carrying Rs. 632 billion in accumulated losses. Sandeepa Arandara was named acting Chairman in March 2026 amid a wider restructuring exercise that has included a Cabinet-approved retreaded aircraft tyre import authorisation and ongoing tender reviews on overseas station services.
Sydney remains one of SriLankan’s most strategically important international ports of call, with strong forward demand from Australian-Sri Lankan and student-traffic segments. The fixed three-year price gives the airline some procurement certainty in a foreign-currency cost line that has been volatile through the broader Iran war shipping disruption.
