Directors of debt-ridden SriLankan Airlines to meet the President

Directors of debt-ridden SriLankan Airlines to meet the President

Written by Keshala Dias

19 Jun, 2017 | 8:59 pm

It was revealed today, that the Board of Directors of SriLankan Airlines will meet President Maithripala Sirisena tomorrow, Tuesday, June 20, to engage in discussions on the future of the loss making state enterprise.

According to Reuters reports, SriLankan Airlines losses more than doubled in the year which ended in March 2017, hit by high costs of canceling leases on Airbus aircraft and partial closure of the country’s main airport.

The state-owned national carrier, incurred an annual loss of Rs. 27.79 billion, versus a loss of Rs. 12.08 billion a year ago.

According to Reuters, more than half of the company’s loss last year was due to a compensation of Rs. 14.36 billion for the cancellation of aircraft lease agreements.

In such a backdrop, the Sri Lanka Nidahas Sevaka Sangamaya, in a letter to the President informs him that the national carrier has fallen to such a state due to false information being supplied to the President and the Cabinet of Ministers.

The letter further reads that as the only trade union headed by the President, it was their duty to reveal the facts to the President.

The trade union points out that Kapila Chandrasena, who was employed as the CEO of SriLankan Airlines under the previous administration, drew a monthly salary of Rs. 1.5 million.

According to the letter, new appointments were made to the positions of CEO, CFO, CAO and CTO after the change in power, it adds that one of these individuals draws a monthly salary of nearly Rs. 4 million.

[quote]“The national carrier SriLankan Airlines is being run like a grocery store. It needs a proper leadership, administration and a business plan. However, we don’t see a broad business plan based on a national need” [/quote] ..said the Chairman of the Sri Lanka Nidahas Sevaka Sangamaya.

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