Losses at SriLankan 51% accumulated interest

Published : 12:04 am  June 19, 2018 | No comments so far |  |  (160) reads | 
  • SriLankan airlines flew on 42 routes but only two of them were profitable
  • We can find a foreign investor after placing the airline on a sound financial footing

 

Life-1-24By Kelum Bandara

Public Enterprise Development Minister Lakshman Kiriella said yesterday the bank interest accumulated over a period of time accounted for 51 per cent of the total losses incurred by SriLankan airlines.

He said this had led him to seek concessions from the lending banks.


The minister told Daily Mirror that during the previous government several aircraft were bought above the prevailing market rates and leased out at unfavourable rates. This had contributed to the losses that were a burden to this government.   


He said the airline flew on 42 routes, but only two were profitable and that he was planning a cost cutting programme and fleet rationalization.  


“We need to place the airline on a sound financial footing. After that, we can find a foreign investor to manage it as a Public Private Partnership,” the minister said.   


Reports say that by March this year, the total loss stood at US$107 million.