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SriLankan Airlines needs US$125mn before end March: PM

Mar 18, 2015 05:51 AM GMT+0530 | 8 Comment(s)

COLOMBO (EconomyNext) - State-run SriLankan Airlines, which ran into heavy sustained losses after its managing partner Emirates was removed by the Rajapaksa regime, needs 125 million US dollars by end March to settle fuel bills and loans, Prime Minister Ranil Wickramasinghe said.

Wickramasinghe told parliament since 2011 August, the airline had received 375 million US dollars on top of a 520 million US dollar equity injection over 5 years.

The airline now needed another 125 million US dollars (16.6 billion rupees) by March 31 to pay Ceylon Petroleum Corporation and repay loans to the Bank of Ceylon.

Wickramasinghe said he was to meet Finance Minister Ravi Karunanayake on the matter Tuesday.

In addition to capital injection made through injections of Treasury bonds, SriLankan had floated syndicated loans and bonds abroad with Treasury guarantees.

SriLankan Airlines has suffered 110 billion rupees of losses since Emirates was ousted by the Rajapaksa regime as its managing equity partner.

According to reports former minister Sajin Vass Gunewardene played a role in the ouster. Vass Gunewardene then set up Mihin Air with people's money, which also started to make losses.
 


 

8 Comments

  1. Perera April 07, 11:37 AM

    The second culprit is former CEO who is the step brother to Sachin Vas's gunawardena. He was stationed in London n during the time he ruined the place n then he became the CEO , rented a penthouse in colombo. Wasted airline money big time n clueless to run an airline Shame!

  2. Waruna March 19, 08:33 AM

    The government is lamenting on the losses now this was story since it's inception and nothing was done to address it except move the same crooks around. Emirates didn't do any favors either, it used its route rights for itself, sold assets and showed as profits. Sold all its aircraft too and got them on lease. There was less local politics then within the company and that was the only grace.

    Both airlines do not follow any known and proved modules to generate funds. Excess hand and checked luggage is a big money spinner for most airlines but at these airlines its the station staff that get rich, viable routes are not looked at, ticket structuring is seriously flawed, interline booking ( beneficial for the company) could be a nightmare or are diverted to private ticketing offices that collect the commissions etc, etc. Too many crooks are free to play. Check all their assets and the story is out why the airlines don't make money

  3. Randy March 18, 07:27 AM

    Do you remember how Peter Hill, CEO of Sri lankan airlines was kicked out by Mahinda Rajapakse out of the country for not offering seats for 60 of his boys, when the flight was full? His visa was cancelled. Srilanka has a country is corrupted by few. There is nothing to take in the airlines.

  4. Asmil March 18, 02:41 AM

    Why to conduct a business in a great loss. Sell all the planes so that loss will be reduced to zero. There are other air lines which could be used for our travellings.

  5. Upali De Soyza March 18, 01:59 AM

    If Vas Gunawardena and the Boarrd of Directors were responsible for such reckless management, why not let the Attorney General deal with them juridically.

  6. macapagal March 18, 10:23 AM

    This fellow Sachin Vaas is totally responsible for this mess. All his assets should be taken and he should be tried in courts and put behind bars for life. this will be a good lesson for the others too

  7. Tilak March 18, 08:49 AM

    The stated loss if correct works out to lkr 5,500 per every person.(Also could be some other reasons too for this loss along with malpractices).However in a country where 40% of our people earn lees than lkr 200/- a day this could be significant.

    If one could truly employ people who understood the message of the Delhi results they may be the best who will work out a true solution with a future in mind. Established structures on the other hand with vested interests may yield unexpected outcomes.

  8. Desapriya March 18, 07:15 AM

    Why the present government waiting without prosecuting these rouges when there are clear evidence.

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