Sri Lanka state airlines get Rs2.38bn handout

Thu, 23 May 2013 06:51:43

08 Jul, 2012 08:17:55

July 08, 2012 (LBO) - Sri Lanka's loss-making state-run airlines have been given 2.28 billion rupees in tax payer money during the first half of 2012, a mid -year fiscal report has revealed.

The tax payer money has been channeled into SriLankan Airlines and Mihin Lanka, through a 'contingent liability' fund of the finance ministry.

In the budget for 2012, a 100 million US dollar injection for Sri Lankan airlines was outlined.

In the year to December 2011, 3.43 billion rupees was provided from the same fund to Mihin Lanka, the finance ministry's annual report said.

Sri Lankan Airlines had lost 15.5 billion rupees from April to December 2011, the report said.

Mihin Lanka on the other hand had made a net profit before interest of 2.0 billion rupees and had finance charges of 51 million rupees, the report said.

However in the first half of 2012 more tax payer money has been injected to the airline.

in the year to December 2011

Sri Lanka state-carrier raises US$175mn from Islamic loan

Sri Lanka state airline loses Rs19.1bn in 2011

Sri Lanka Mihin Lanka losses mount, assets negative

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READER COMMENT(S)

3. kawdaboy Jul 09

@Niranjan, Right you are Sir. I think more people are migrating/looking to migrate now than when the war was on. Why make our children/grand children slaves for the mistakes we made electing the current administrators.

2. Niranjan r Jul 09

Robbing Sri Lanka
'Contingent liability' is the Top Management.
Correction
Rs.2,280,000,000Bn is not Tax Payers Money its Foreign debt and our great grand children will have to work as slaves for generations to pay back.

Who conduct the audit’s in these firms’? How come they are not ever held responsible (Golden Key and many others?).No one is held accountable-This is a Banana republic! I’m sure they will Purchase more Planes and make thumping commotions?

With the global melt down most air lines are retrenching but we go buy more Air Crafts and the cost is not mentioned??????
This 'Dushanaya & Beeshanaya' @ its Boldest

1. kawdaboy Jul 08

A flying black hole to the exchequer! Wonder how the books were cooked to make Mihin Lanka profitable? Transferring costs to Sri Lankan Airlines?