Sri Lankan Airlines to run losses for another three years: COPE report

July 24, 2013 (LBO) – SriLankan Airlines was expected to run losses for another three to four years before breaking even, a report by a parliamentary committee which has oversight over state enterprises has said. SriLankan had lost 17.1 billion rupees in 2011. According to available data the airlines had lost at least 58 billion rupees since Emirates, its one time management and equity partner quit.

The Committee on Public Enterprises (COPE) of Sri Lanka’s parliament had been told by SriLankan officials that 60 percent of the losses were coming from European destinations and steps were being taken to trim operations in the sector.

SriLankan had said it would take “another 3 to 4 years” to breakeven, provided it could maintain “cost increases around 2 percent against the generated revenue.”

COPE had also required the firm to send a report on the financial impact of operating aircraft to the newly built Mahinda Rajapaksa airport in Mattala.

“The financial position of the company was extremely unfavourable”, the report said.

The COPE report said the airline had been asked to pay special attention to its financial status since the banking sector of the country the country was also “under a th