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Monday May 17th, 2021
Aviation

SriLankan Airlines saves US$150mn on leases, gets equity

ECONOMYNEXT – State-run SriLankan airlines has re-negotiated several lease contracts saving the airline 150 million dollars over five year, as part of efforts to put the carrier on a stronger financial footing, Chairman Ashok Pathirage said.

The re-negotiated leases would save about 30 million US dollar a year, he said.

In December 2020 the airline also got a 150 million dollar equity injection from the government, he said and the balance 350 million dollars is expected this year.

SriLankan is also doing a voluntary retirement scheme.

The cabinet of ministers last year approved a 1.46 billion rupee compensation package to voluntary retire 560 people and make it more viable.

SriLankan Airlines operated during the height of the Coronavirus pandemic keeping the island linked to the rest of the world, bringing stranded Sri Lankans home and carrying cargo as airports and airlines shut down around the world.

The airline however had lost 36 billion rupees up to August 2020. (Colombo/Jan31/2021)

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