SriLankan Catering flight kitchen in Rs.250mn expansion
Thursday August 15, 2019 12:35:00
ECONOMYNEXT- State-owned SriLankan Catering Limited, which prepares meals for airlines at the Bandaranaike International Airport (BIA), has received approval for a 250 million rupees expansion for its flight kitchen, the cabinet office said on Tuesday.
The expansion will see the firm, a profitable subsidiary of the loss-making national carrier SriLankan Airlines, raise its capacity to 40,000 daily meals, from the current 25,000 meals, a statement from the cabinet office said.
SriLankan Catering operates as a monopoly.
According to the firm’s data, it made 7.7 million meals a year (21,063 meals a day) for 22 airlines which visited Sri Lanka’s largest international airport for the financial year 2017/18, up 22 percent from 6.2 million meals a year earlier.
It had nearly reached full capacity in January 2018, cooking 24,113 meals a day, catering to 72.8 percent of air passengers arriving and departing from Sri Lanka.
Finance Minister Mangala Samaraweera made the proposal for the expansion, which was approved by the cabinet, the statement said.
The expansion is happening at the same time as the extension of BIA to handle more passengers.
Sri Lanka is receiving international accolades as a must visit destination, and the government is hoping for more tourists to visit the island in the future.
SriLankan Catering has already obtained 150 perches of land adjacent to its current facility from the state’s airport management agency; Airport and Aviation Services Limited, for the expansion the cabinet office said.
SriLankan Airlines’ annual report for 2018 shows that the catering segment had made a 3.9 billion rupee profit for the year, while the group had made an 18.6 billion rupee loss.
SriLankan Catering operates the kitchen, an industrial laundry service and a restaurant and transit hotel at the airport. (Colombo/Aug15/2019)