The finance ministry said the total debt of SriLankan Airlines was 750 million dollars.
The government was bearing 375 million dollars and 26,250 million rupees of contingent liabilities on account of losses piled up since 2014.
"This includes the guarantee granted for International Bonds and letters of comfort issued to obtain loans during the BIA closure in 2016," the report said.
"Therefore, it is observed that the GOSL needs to have a significant business restructuring model, owing to the high possibility for the Government to bear the loss, and also due to the high correlation between Aviation industry and the tourism sector in the country."
The current administration has failed to privatize SriLankan Airlines despite there being no significant political opposition to a sale.
The cabinet of ministers had since approved a re-structuring plan in May 05 given by an expert committee appointed by President Maithripala Sirisena.