All routes it has operated will be served by Sri Lankan Airlines, it adds.

Speaking to media, SriLankan Airlines media spokesperson Deepal Perera has said that Mihin Lanka is to merge with SriLankan Airlines with effect from the 30th of October.

Mihin Lanka, the budget airline partner of SriLankan Airlines has been plagued by financial losses, debt, waste, corruption and other irregularities since its inception in 2007.

In order to reduce losses and increase productivity, the government has approved to merge Mihin Lanka with SriLankan Airlines by the end of 2016.

Earlier, the state owned publication 'Daily News' quoted Public Enterprises Development Minister - Kabir Hashim as to saying that Mihin Lanka will wind up its operations this year and that the airline will be absorbed to the national carrier SriLankan.