Sri Lanka state airlines get Rs2.38bn handout

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. 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 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.