SriLankan Airlines restructuring dragged further even after 2 years

srilankan

Nov 21, 2017 (LBO) – Restructuring process of SriLankan Airlines align with suitable business partner dragged further even after two years without having meaningful outputs, Finance Minister revealed.

In the latest fiscal management report, Finance Minister Mangala Samaraweera said delays in the restructuring process have increased the burden of business loss to the organization.

“The loss of the airline has increased to 28.4 billion rupees in review period of 2017 compared to loss of 12.6 billion rupees recorded in previous year,” the report said.

As per the report, this year’s loss includes an additional cost of 14.3 billion rupees incurred on cancellation of three aircrafts (A350-900) on lease agreement.

It also includes the closure of Bandaranaike International Airport in day time for first three months, therefore cancelled around 600 flights.

“However, there is an agreement to purchase brand new four aircrafts (A350-900) which are to be delivered in 2020. The Cabinet has appointed a special ministerial committee to make final decision in this regard.”

Having considered the deteriorated financial position, the government has secured 30 billion rupees and 210 million dollars as bank loans as at the end of July 2017 to the SriLankan and Mihin Lanka.

In order to secure the going concern status of the airline, the treasury has also issued a letter of support ensuring continuous assistance for running business until the ongoing restructuring process as instructed by the cabinet.