Price Surge

From left: Dr. Fernando Im, Senior Country Economist for Sri Lanka and the Maldives, The World Bank, Hon. Eran Wickramaratne, State Minister, Ministry of Finance and Mass Media, Dr. W A Wijewardana, Former Deputy Governor of the Central Bank of Sri Lanka, Prof. Indralal de Silva, Former (Chair) of Demography, University of Colombo, Prof. Amala de Silva, Department of Economics, University of Colombo at the panel discussion on "Demographic Change in Sri Lanka" moderated by Dr. Ramani Gunatilaka, International Centre for Ethnic Studies.

SriLankan Airlines is raising fares by five percent from October 1, as twin effects of a falling rupee and rising oil prices chips away profits. SriLankan Airlines is raising fares by five percent from October 1, as twin effects of a falling rupee and rising oil prices chips away profits. The national carrier got Civil Aviation Authority (CAA) consent in Aug., for a fare hike, the first in almost three years, says G T Jeyseelan, Head of Commercial SriLankan.

In July, SriLankan slapped a US$ 5 to US$ 10 fuel surcharge to cover fuel costs, but another request for a similar oil surcharge is still pending before the CAA.

Aviation fuel prices have surged 65 percent in the past year. Jet fuel prices were US$ 0.98 a gallon last year. The airline budgeted for US$ 1.15 a gallon this year, but is now paying around US$ 1.30.

Fuel accounts for roughly 20 percent of an airline’s costs, with every increase of one US cent in oil prices adding US$ 1 mn to its fuel bill, Jeyeseelan says, while not disclosing the cost of the increase to SriLankan.

The International Air Transport Association said recently that airlines may lose as much as a com