SriLankan: 51% of the losses was accumulated interest

19 June 2018 08:08 am - 8 - {{hitsCtrl.values.hits}}

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Public Enterprise Development Minister Lakshman Kiriella said yesterday the bank interest accumulated over a period of time accounted for 51 per cent of the total losses incurred by SriLankan airlines.

He said this had led him to seek concessions from the lending banks.

The minister told Daily Mirror that during the previous government several aircraft were bought over the prevailing market rates a leased out at unfavourable rates had contributed to the losses that were a burden to this government.

He said the airline flew on 42 routes, but only two were profitable and that he was planning a cost-cutting programme and fleet rationalization.

“We need to place the airline on a sound financial footing. After that, we can find a foreign investor to manage it as a Public-Private Partnership (PPP),” the minister said.

Reports say that by March this year, the total loss stood at US$107 million. (Kelum Bandara)

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Comments - 8

Paddy Fonseka Tuesday, 19 June 2018 08:16 AM

If Srilankan does not fly how much money would be lost for tourism?

Dee Tuesday, 19 June 2018 08:16 AM

And a youth Foundation is being created in the name of the late economic maestro.

Brainmaster Tuesday, 19 June 2018 10:41 AM

Kiriella unfortunatly doesnt have the knowledge to improve UL. via DM Android App

Raj Gonsalkorale Tuesday, 19 June 2018 11:22 AM

Mr Minister, read the news item captioned "Half of state officials should be in jail by now: AG" in this newspaper today. You will know where the "losses" have gone.

gamini Tuesday, 19 June 2018 12:07 PM

handing over anything and everything to the Chinese is the ONLY solution that Srilankans know and probably want

Sambo Tuesday, 19 June 2018 06:54 PM

This is like the Pot calling the Kettle Black. We don't have faith in you either.

Alex Tuesday, 19 June 2018 07:46 PM

Appoint Kirielle the finance minister to save SL from the economic crisis.

Ceylon Wednesday, 20 June 2018 12:07 AM

Half of those interests gone to rajapaksa family as commisions to get the loans.

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SriLankan: 51% of the losses was accumulated interest

Comments - 8

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