SriLankan Airlines seeks a loan to settle 14bn CPC debt

COLOMBO (News 1^st) - Sri Lankan Airlines owes the Ceylon Petroleum Corporation a sum of Rs 13.45 billion.  Reports suggest that the Airline is preparing to obtain a loan from a private bank in order to make payments to the CPC. Joint Cabinet Spokesperson, Minister (Dr) Rajitha Senaratne addressing the cabinet media briefing today stated that the aviation service was destroyed in the past by an unqualified person who does not even have Ordinary Level qualifications. He added that the people who came into power through the current government destroyed the rest, during the initial period. Citing that SriLankan Airlines needs to be revived the Former Government appointed the brother-in-law of Mahinda Rajapaksa to the post of Chairman of the Airline. After the present government came into power, they too claimed the airline needs to be revived and appointed Suren Ratwatte to the post of CEO of the Airlines. He is the brother of Charitha Ratwatte, who is a close associate and Senior Adviser to the Prime Minister. At present, Suren Ratwatte who caused the airline to incur losses to the tune of billions has compensation to the tune of million to retire prematurely. At a time when the CEO who failed to revive the airlines is making demands for compensation to retire from service, a situation arose where the supply of fuel to the national carrier would be suspended. As per an agreement reached by the CPC with SriLankan, fuel worth 13 billion rupees is provided to the national carrier on a credit basis. However as the limit exceeded, a warning was issued to the national carrier that the supply of fuel would be suspended from today. On the 02nd the matter discussed between the Officials from the Ministry of Petroleum Resources Development, CPC Officials as well Officials from the airline including the Chairman. At this discussion, the Chairman of the Airlines had informed that a sum of 800 Million Rupees from the total due, will be repaid within this week. In addition, Cabinet Approval is being sought to obtain the remainder as a loan from a Private Bank. According to Cyril Suduwella, Former Jet Fuel Advisor of Sri Lankan Airlines Ltd, he has presented a report stating clearly that they are incurring losses from Jet Fuel. He added that they held discussions with the Former CEO of the airline and after that, he is not aware of what happened. If there is an increase of one USD Cent for a gallon of Jet Fuel, the Airline will incur a loss of 540 Million Rupees, said Cyril Suduwella adding that even if a Commercial Loan is obtained to cover this amount, the airlines will have to operate in the same manner and if the same fuel formula is being used the losses will continue.

Are these tactics used to somehow create a way to get the cabinet to approve an 82 million dollar loan from a private bank?