On 28 March 1980, Air Lanka signed a purchase agreement for two brand new Lockheed L1011-500 Tristars, the most advanced wide-body aircraft in the world at that time.

This agreement included exclusive rights for all aircraft ground handling and airline catering at Colombo-Bandaranaike airport for ten years.

Emirates bought a 40% stake worth US$70 million (which it later increased to 43.6%) in Air Lanka and sought to refurbish the airline's image and fleet.

The government retained a majority stake in the airline but gave full control to Emirates for investment and management decisions.

SriLankan upgraded its existing A340 fleet into a two-class configuration (business and economy class) whilst overhauling the interior to reflect the new corporate image.

The airline gradually increased its number of destinations with more additions for regional markets, notably India and the Middle East.

[12] Emirates sold its 43.63% stake in the airline back to the Government of Sri Lanka in a deal that was finalized in 2010, thus ending their partnership.

In October 2017, SriLankan launched direct daily non-stop flights to Melbourne, Australia, its first new long-haul route in over five years and the most ambitious expansion to date.

The flights restore a regular direct air link between Australia and Sri Lanka after a hiatus of sixteen years.

[24] From May 2022, due to the ongoing economic crisis in Sri Lanka which resulted in the country facing a fuel shortage, SriLankan's long-haul flights had to make stopovers at Trivandrum, Chennai and Kochi in India to refuel.

[25][26][27][28] For the financial year 2022–2023, SriLankan Airlines achieved a break-even for the first time in over a decade and posted a net profit of $3 million.

Red reflects the predominant colour in the Sri Lankan national flag, which represents the majority race in the country, the Sinhalese.

Newly delivered aircraft are adorned with a redesigned livery accompanying a blue underbelly slogan promoting Sri Lanka as a tourist destination.

On 11 June 2012, SriLankan Airlines was announced as Oneworld's latest member-elect, on the sidelines of the IATA World Air Transport Summit in Beijing.

[citation needed] In 2012, SriLankan Airlines aimed to boost its fleet to 35 aircraft over the next five years and had talks with both Airbus and Boeing regarding a deal.

[58] In April 2013, it was announced that SriLankan Airlines had won government approval to acquire four Airbus A350-900 and seven A330-300 aircraft, with deliveries of the A330-300 starting from October 2014.

In Business Class, SriLankan offers full flat-bed seats on all of its long haul fleet with Audio Video on Demand (AVOD) facilities.

On its A330-300 and A320/A321neo aircraft, all cabin classes are provided with the option of paid-for in-flight internet access and mobile telephony services.

Five of the six aircraft that have been destroyed, and all of the reported deaths of SriLankan Airlines passengers and employees, have been a result of the civil conflict in Sri Lanka.

On 3 May 1986, a bomb planted by the terrorist group LTTE exploded on board Flight UL512 before takeoff at Bandaranaike International Airport.

The right engine caught fire – extinguished by the airport safety services – and the 104 passengers and 12 crew evacuated the aircraft via the chutes on the left side without injury.

[88] According to the Finance Ministry data, SriLankan lost LKR 24.5 billion from April to July 2021, as the company, which was already losing money, encountered further difficulties during the SARS-CoV 2 outbreak.

[89] In March 2015, a report was released following a Board of Inquiry investigation into corruption at SriLankan during the time it was under the chairmanship of Nishantha Wickramasinghe.

[92][93] On 14 April 2021, SriLankan Airlines claimed on Twitter that it had made history by operating three successive cargo charter flights to Entebbe International Airport, Uganda, transporting over 102 tonnes of “printed papers” in February 2021.

[96][97] The Biyagama branch of the De La Rue company is responsible for printing currency notes to countries including Uganda.

[99] SriLankan Airlines decided to sue Airbus for $1 billion as damages, loss of reputation, reimbursement of costs, and interests.

The action follows the information revealed in the judgment of the Crown Court of the United Kingdom approving the Deferred Prosecution Agreement between the Serious Fraud Office and Airbus SE.

[citation needed] Following the economic crisis of 2022, the Sri Lankan government has been exploring approaches to privatising several state-owned companies including SriLankan Airlines.

In 2023, the Sri Lankan government set up the 'State-Owned Enterprise Restructuring Unit' (SRU) under the Ministry of Finance to assist in the privatisation of state-owned companies such as SriLankan Airlines.

The other entities include FitsAir, Dharshaan Elite Investment Holding Ltd., Sherisha Technologies Ltd., Hayleys PLC, and Treasure Republic Guardians Ltd. AirAsia Consulting Sdn.