Two state banks - the Bank of Ceylon and the People’s Bank – will extend financial assistance of Rs.13.5 billion to bail out the cash-strapped SriLankan Airlines, it is learnt.
Public Enterprise Development Minister Lakshman Kiriella submitted the Cabinet memorandum in this regard. Earlier, the bank interests, accrued over a period of time, accounts for a bulk of the total losses of the national career.
It is learnt that the two state banks will issue the Letters of Comfort in this regard soon.
However, Finance Minister Mangala Samaraweera, in his observation on the Cabinet paper, has stressed the need to restructure the national career or to find a new investor for the development of it. He is reported to have said that this will be the last time for the State banks to give such financial assistance.
SriLankan Airlines lost US$ 105 million of Rs.16 billion for the last financial year. The International Monetary Fund (IMF) also recommended the government to restructure the national career.
A top-level committee, appointed by the government to look at the financial situation of the airline, has recommended the fleet and route rationalization along the laying off of the staff. (Kelum Bandara)
Sambo Wednesday, 11 July 2018 07:19
Very Good! Politicians paly out , rob and cheat and the public has to bail the company out. A Land like no Other. God bless Sri Lanka and it's politicians.
Reply : 1 48
Waru Wednesday, 11 July 2018 09:10
Dont forget the national carrier was profitable up until Rajapaksha crewed it up for us.
Reply : 5 35
Rob Wednesday, 11 July 2018 10:00
We like Singapore Air or emirates but no intergrated people in the communel single clans. So rob people money. This time 13.5 billion andso on......
Reply : 0 10
Somapala Wednesday, 11 July 2018 14:39
Nam the politicians who chased away Emirates, when Sri Lankan was making profits?
Reply : 0 7
Arnold Wednesday, 11 July 2018 07:26
Sri Lankans should stop paying taxes their hard earned tax money is wasted like this. If a business is viable privatize it or close it down. So many Western countries have privatized or closed down their national carriers. So why do we keep subsidizing a dead elephant??
Reply : 3 61
Abu Umar Wednesday, 11 July 2018 09:14
Had Sri Lankan being under Emirates as it used to be, it would not have been in this situation. All because of MR's ego problem and no one talks about it.
Reply : 5 29
Harrry Wednesday, 11 July 2018 09:16
Moment please!! ..".Earlier, the bank interests, accrued over a period of time, accounts for a bulk of the total losses.." If you add the politicians travel" you find the balance lost my dear!
Reply : 0 6
Katie Wednesday, 11 July 2018 09:26
if the emoluments and perks afforded to the top management are reduced by 50% this airline can be turned around. Apparently it is learnt that one manager has requested the staff to bring in their used grocery plastic bags to save money. It would be better if the manager in question gives up his perks and take a cut off his emoluments.
Reply : 0 10
asela Wednesday, 11 July 2018 10:37
Those who are not aware of the actual facts of Emirates administration of Sri Lankan Airlines should not make comments of Emirates magic. There was no profitability at all during their time and they only wanted to screw us by capitalizing on our routes and many more gimmick.
Reply : 20 7
dravid Wednesday, 11 July 2018 11:55
Totally disagree as thanks to emirates that Airline even is alive today. this story of emirates taking srilankan airlines routes is just an imagination as people must know routes are decided between 2 countries as per bilateral agreements not by airlines. emirates managed the best 10 years in the history of the airline for sure
Reply : 2 20
Sanath Wednesday, 11 July 2018 10:46
It is useless to keep pumping money to this monster that is sucking the blood of the entire nation. Better to wind up or give it to a probable investor.
Reply : 0 10
dravid Wednesday, 11 July 2018 11:18
The Airline is lucky as this is almost the 4th time that government banks have come to the rescue although they keep saying its last time? This mess was never there during emirates managed times with competent top Management in place. The current commercial top people are - yes sir people who have no experience but sit at top for having been yes sir people past 3 years who ruined whats left along with former so called chief officer of commercial who came for 2 years screwed up things and was packed off.Its time government brought back some seniors who worked with passion well from emirates times. Also the airline can never be any help to the country unless it also support the tourism drive which currently they don't by only operating as a regional airline to India area and keeping the lucrative european markets away.Take some bold decisions and put this worthy airline back
Reply : 1 14
luxman Wednesday, 11 July 2018 13:36
tax payers will run the airline for how long ,the top management .who were responsible for the nosedive of the airline keeping flying at a high altitude with all the perks100usd per day on duty travelplus accomodattion.with breakfast on five star hotels
Reply : 0 1
Leslie Jayaweera Wednesday, 11 July 2018 14:33
No use of bailing out the airline until a true independent management is appointed in absence of political interference as well as discharge of entire srilankan air cabin crew those who act as air marshals.
Reply : 2 1
AR Wednesday, 11 July 2018 15:39
So again public funds, i mean 2 state banks !!
Reply : 0 1
Rohan Wednesday, 11 July 2018 16:14
This airline has been a curse for the country and it's worse than Hambantota harbor and the airport. Only politicians want to keep the srilankan airlines for their free travel and to give jobs to their henchman in the airline.
Reply : 0 2
Ladurshi Wednesday, 11 July 2018 16:56
Poor management of politicians. First the government should stop giving permits to government servants and check whether the tax are paid by the politicians and other businessmen, then its possible to recover the losses easily and restructure it and make profits.......
Reply : 0 2
REEZ Wednesday, 11 July 2018 17:47
White elephant story again.
Reply : 0 3
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