SriLankan Airlines not able to repay debt: Prime Minister
Mar 23, 2016 17:11 PM GMT+0530 | 0 Comment(s)
ECONOMYNEXT - State-run SriLankan Airlines will not be able to service its debt and the government will have to decide whether to take over its liabilities, Prime Minister Ranil Wickremesinghe said.
"In the next month or six months we will have to take a decision what to do about the debts of SriLankan Airlines," Wickremesinghe told parliament.
"SriLankan Airlines will not be able to pay these debts. Whether government is to take over them or what is the decision we will inform this house."
He said in addition to payments due on Airbus A350 aircraft SriLankan had additional liabilities
According to the last published annual report on March 2015, the airline had a 175 million dollar bond which was already guaranteed by the government which was not due this year, and a UAE Dirham 122.43 which was being paid down monthly.
In addition it had also taken short term loans from domestic banks.
SriLankan was being given 100 million dollar bailouts from the Treasury during the Rajapaksa administration to keep afloat. In 2015 the airline had made losses of about 16 billion rupees, Wickremesinghe had said earlier, down from about 30 billion in 2014.