Aug 27, 2009 (LBO) – Sri Lankan Airlines group has lost 9.99 billion rupees in the year to March 2009, down from a profit of 4.9 billion rupees a year earlier as revenue fell amid a global downturn and falling tourism arrivals at home. Sri Lankan Airlines group also has a catering subsidiary.
At stand alone company level, the firm has 9.3 billion rupees and its current liabilities were higher than current assets by 8.1 billion rupees. Net assets had fallen to 6.2 billion rupees from 15.5 billion rupees a year ago.
“These factors raise doubts that the Company will be able to continue as a going concern,” the annual report said.
But revenue enhancement, new code-share partnerships, pricing, route re-structuring and cost management have made directors “confident of the Company’s ability to continue in operation for the foreseeable future,” the report said.
Correction: Revenues fell 7.2 percent to 74.2 billion rupees. The company lost 5.8 billion rupees in the first quarter as shortly after the government terminated a management agreement with Emirates Airlines.
Revenues fell 7.2 percent to 74.2 billion rupees.
“To compound matters, increased competition was experienced from subsidised airlines whic