A loss of Rs 40 billion for SriLankan Airlines

A loss of Rs 40 billion for SriLankan Airlines

Written by Staff Writer

23 Jan, 2019 | 9:05 pm

Colombo (News1st)-Sri Lankan airlines has posted a net loss of 40 billion rupees during a nine-month period that ended on the 31st of December 2018.

Issuing a communique Sri Lankan airlines stated that the loss for this nine-month period had increased by 29 billion rupees from the corresponding time period of the previous year.

Nevertheless, despite the spike in losses from 11 billion to 40 billion rupees, The statement read “Sri Lankan Airlines recorded a significant improvement in its performance, for the 9 months ended on 31st December 2018 against the corresponding period in the previous year.”

It adds “Notable improvements were recorded in the deployment of capacity, passenger and cargo revenue, market yield and unit cost.”

Highlighting the external factors that adversely affected the airliner the statement depicted “The Year 2018 was a challenging year for the Airline due to the adverse impact of rising global fuel prices, rapid depreciation of local and regional currencies and political instability.”

The Sri Lankan airlines statement went on to note, “Increase in passenger revenue would have been much higher if not for the depreciation of key revenue generating currencies which amounted of USD 9 million during the period under review.”

CEO of Sri Lankan airlines Vipula Gunatilleka said that the Year 2019 will be the year of consolidation for the Airline and the management initiatives undertaken during the 2nd half of 2018 are expected to show positive results.

This is the breakdown of profits and losses of SriLankan from 2008 to 2017.

In 2009, following the withdrawal of Emirates, Sri Lankan airlines incurred a total loss of Rs. 9,996.85 million. From 2008 to 2014, Sri Lankan airlines incurred continuous losses, when it was under the former chairman, Nishantha Wickremesinghe, the brother-in-law of former President Mahinda Rajapaksa.

The unfortunate fate of the loss-making national carrier did not end there. In 2015, following the resignation, of Ajith Dias, Suren Ratwatte, the brother of Charitha Ratwatte, who is a friend and adviser of the current Prime Minister Ranil Wickremesinghe, was appointed as the CEO of SriLankan.

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