SriLankan Airlines record Rs9.5bn loss in first 4 months!

SriLankan Airlines record Rs9.5bn loss in first 4 months!

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The total loss of Sri Lankan Airlines increased by 55 percent to 9.52 billion in first four months compared to loss of 6.12 billion recorded in the same period last year.

The accumulated losses and the negative net worth of the airline as at the end of April 2017 reached 170 billion rupees and 116 billion rupees respectively.

Treasury has provided guarantees and letters of comfort in order support the Sri Lankan Airlines to secure the loan facilities until the restructuring process is concluded.

The accumulated commitments up to April 2017 stood at 29.92 billion and 210 million US dollars.

The report said 168 employees of Mihin Lanka (Pvt) Ltd have resigned under the VRS scheme offered while 124 employees were absorbed to SLA.

The government seeks to restructure Sri Lankan Airlines and expects to offer an equity stake and management control of the company with a view to turnaround the airline as a commercially viable entity.

Due to delays in selecting a suitable business partner, the cabinet committee on economic management has appointed a high level committee to study all options available for the restructuring.

 

lankabusinessonline.com

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