COLOMBO (EconomyNext) – State-run SriLankan Airlines had racked up a 29.0 billion rupee operating loss in 2014, taking total operating losses since parting of ways with Emirates Airlines to 122 billion rupees.
The Central Bank’s annual report for 2014 says the airline’s revenues rose 5.5 percent to115.5 billion rupees but operating expenses rose 4.6 percent to 144.4 billion rupees.
SriLankan Airlines has lost money heavily after a 10 year management contract with Emirates Airlines ended 2008 after its then Chief Executive Peter Hill’s visa was not renewed by the Mahinda Rajapaksa administration.
According to report at the time, SriLankan had not accommodated a large Presidential entourage on a single aircraft but split them, as it did not want to dump too many paying passengers, resulting in the parting of ways.
From 2009 SriLankan had made total operating losses of 122.1 billion rupees according to Central Bank data.
Central Bank operating loss data is not available for SriLankan in 2008.
The net losses reported by SriLankan Airlines are lower than operating losses, due to other income such as one off sales of assets, changes in accounting methods, other income as well as consolidation.
In 2009 for example, SriLankan reported group loss of 9.96 billion rupees, compared to a 12.2 billion rupee operating loss given in Central Bank data. According to SriLankan Airlines data in 2008, it made profits of 4.9 billion rupees, and without catering a profit of 4.4 billion rupees.