SriLankan Airlines loses Rs36.3bn up to Aug 2020
ECONOMYNEXT – SriLankan Airlines has lost 36.38 billion rupees up to August 2020, amid a Coronavirus crises that hit all carriers, against 44.02 billion rupees in the year to March, official data shows.
SriLankan Airlines has lost 284 billion rupees since Emirates Airlines was removed as managing partner and the carrier was re-nationalized.
The airline last made a profit in 2008 of 4,899 million rupees.
The airline had been mired in procurement scandals and a former chief executive was arrested after a UK bribery inquiry revelation.
In 2020 after the Coronavirus crisis hit SriLankan was kept running by the current management, when many airlines were grounded, carrying passengers and vital cargo to the country, along with Qatar Airways which was also operating ferry flights.
The airline is operating all cargo flights including with cabin loading. Freight rates and fares have risen across the world.
The cabinet of ministers this week approved a 1.46 billion rupee compensation package to voluntary retire 560 people and make it more viable.
The airline had also been re-negotiating leases.
Prime Minister and Finance Minister Mahinda Rajapaksa told parliament that the government would inject 150 million US dollars (about 27 billion rupees) as equity to the airline.
Srilankan however had large gap in its balance with 261 billion rupees in negative net assets as of March 2020. (Colombo/Nov20/2020)