Sri Lankan Airlines reduces losses

Apr 20, 2011 (LBO) – Sri Lankan Airlines managed to sharply reduce losses in 2010 as revenue rose with a recovery in air travel and the end of a war increased tourist arrivals. Arrivals rose 43.5 percent in March 2011 to 75,130, with steep increases seen from South Asia and several European generating markets. The national carrier made an operating loss of 6,272 million rupees in 2010, down 49 percent from the previous year, according to the central bank.

Revenue increased by 26.3 percent to 67,835 million rupees while the airline’s operating cost increased by 12.4 percent to 74,107 million rupees.

“The increase in revenue and the implementation of stringent cost control measures contributed to the reduction of the operating loss of Sri Lankan Airlines,” the central bank said in its annual report.

It said there was a “notable increase” in air passenger and freight transportation in 2010 owing to the gradual recovery in the global economy and post-conflict improvement in the tourism sector.

The number of passengers carried by Sri Lankan Airlines increased by 24.5 percent in 2010 from the previous year.

The central bank also said the loss-making state-ow