Mihin Lanka will be merged with SriLankan Airlines with effect from October 30, Sri Lanka's flagship career the SriLankan Airlines said.
Mihin Lanka, which was launched as a budget airways, currently conducts flights to several destinations including Bahrain, Dhaka, Gaya, Madurai, Muscat and Seychelles.
In future these flights will be conducted under SriLankan Airlines.
Sources within SriLankan Airlines said that the flagship career is reducing long distance flights since it cannot compete with larger air lines. Meanwhile, flights to the middle east and India have shown an increase in passengers and are thought to be more productive.