Mihin has accumulated loss of Rs.8.5 bn

2012-11-26 20:56:47

The cash-strapped budget airline ‘Mihin Lanka’ has suffered a loss of two billion rupees during this financial year alone and an accumulated loss of a staggering Rs.8.5 billion since its inception in 2007, the Auditor General reveals.

The parliamentary Committee on Public Enterprises (COPE) discussed the Auditor General’s report on Mihin Lanka yesterday.  

The Auditor General has observed that although the Company is running at a continuous loss, the annual remunerations paid to the six-member Board of Directors have increased over the years.

Rs.11 million has been paid to directors as remunerations last year -- an increase on Rs.4.9 million paid for the previous year.

According to the Auditor General’s report the Mihin Lanka Chief Executive Officer (CEO) who is also the CEO of Sri Lankan Airlines is paid Rs.500,000 a month by each of the institutions as rumeneration.

The Auditor General observes that such heavy losses have been incurred by the company for the last five years despite grants and concessions by the government in substantial quantities.

The Treasury granted Rs.507 million this year; Rs.406 million last year; Rs.1,508 million for 2010, Rs.2,882 million for 2009, Rs.500 million for 2008 and Rs.250 million for 2007.

The loss sustained for the financial year 2007/2008 was Rs.3.1 billion; Rs.1.3 billion for 2008/2009; Rs.1.2 billion for 2009/2010; Rs.940 million for 2010/2011 and Rs.1.9 billion for 2011/2012. (Kelum Bandara)

  Comments - 31

  • HK Monday, 26 November 2012 21:08

    From the day one it's loss....... So no big deal this country is getting lose in. All !

    Reply : 2       67

    senthil Monday, 26 November 2012 21:50

    great news on VP's Bday..

    Reply : 2       47

    Ami Monday, 26 November 2012 22:15

    When are we going teach them a lesson ?

    Reply : 1       42

    buffaloa citizen Wednesday, 28 November 2012 03:49

    Not until we learn a lesson.

    Reply : 0       5

    White Elephant Monday, 26 November 2012 23:18

    Congratulations to all the patriots who back corruption.

    Reply : 3       86

    aaks Monday, 26 November 2012 23:19

    Mihin flies high!

    Reply : 0       36

    Punchi Putha Monday, 26 November 2012 23:32

    Must be in the pockets of the bigwigs

    Reply : 1       39

    Poirot Monday, 26 November 2012 23:45

    Mihin or Sri lankan will not make money until the next government.

    Reply : 4       42

    Village boy Monday, 26 November 2012 23:59

    Doesn't matter, we make our kings family happy. thanks.

    Reply : 1       49

    Shan Gamage Tuesday, 27 November 2012 00:00

    take political manager to control mihin Lanka with good package like 5Lks salary per month via DM Android App

    Reply : 0       31

    @aqular27 Tuesday, 27 November 2012 00:00

    do we still need to keep this flying.. when all it's doing is dragging us down!! via DM Android App

    Reply : 1       44

    Gamini Tuesday, 27 November 2012 00:00

    Lets bring an impechment motion. The Auditor General is too much via DM Android App

    Reply : 2       39

    Mohan Tuesday, 27 November 2012 00:09

    only 2B ? how many % of loss pass to sri Lankan air account ,and officially each sri lankan paid Rs 200 for ___________ (fill the blank)

    Reply : 0       31

    Mohan Tuesday, 27 November 2012 01:58

    calculation error it's Rs400

    Reply : 1       24

    Public Abilik Tuesday, 27 November 2012 00:20

    Yeah, let's forget blatant corruption like this, but try to Impeach the CJ for alleged 'irregularities'. This is what happens when baboons rule a country.

    Reply : 0       44

    Curious Tuesday, 27 November 2012 00:30

    They leased another air plane with all these loses. Is this being used for propaganda?

    Reply : 0       32

    MagodisThuma Tuesday, 27 November 2012 00:47

    Because it's used by the company for holiday tours !

    Reply : 0       38

    meenavan Tuesday, 27 November 2012 00:47

    Who is going to take responsibility.for the loss...entire nation or executive.....?.

    Reply : 1       43

    Jagath Leanage Tuesday, 27 November 2012 00:55

    No wonder. All this years Mihin air running at losses.So how can, change that pattern.

    This Mihin Air is a big shots property. So all the losses are born by Treasury.

    Reply : 0       25

    Nodrog Tuesday, 27 November 2012 00:58

    We are beggars trying to hoodwink the world into thinking we're kings.

    Reply : 1       51

    wijebahu Tuesday, 27 November 2012 01:04

    however when comes to CJ and SF rule is implemeted to every dot and comma.

    Reply : 1       34

    Ranjith Tuesday, 27 November 2012 01:14

    Never in Sri Lanka, Who ever comes Dot and coma they will put on us.

    Reply : 3       17

    Sonna Boy Tuesday, 27 November 2012 02:16

    Are we the only 3rd world country to have two national air lines? If so we certainly are the wonder of the world.

    Reply : 0       35

    Three Guesses Tuesday, 27 November 2012 04:35

    this alone is good enough to bring about a no confidence motion against the leadership for the greater benefit of the country

    Reply : 0       24

    Yuri Tuesday, 27 November 2012 08:23

    I think if Mihin airlines Buy few AB380 and few 777 ER they could recover the loss,

    Reply : 1       7

    Raju Raja Tuesday, 27 November 2012 08:26

    Rs.1,000,000 monthly Salary for a person? What a Developed country with family business.
    Earning is not a problem, does he spend all that money in Sri Lanka?

    Reply : 0       7

    Panikkiya Tuesday, 27 November 2012 11:35

    How can this be true? Sri Lankan national media announced that the airline squired a new aircraft several days ago!!

    Reply : 0       9

    DHANUSH Tuesday, 27 November 2012 11:35

    too late to realize,if you still dont, then never

    Reply : 0       5

    Mims Tuesday, 27 November 2012 21:56

    This is the national aircraft of arrogance. Being abused by the Rajapaksa's and kept afloat because of big egos, even at disgusting losses.

    Reply : 0       2

    MNM Wednesday, 28 November 2012 04:37

    Ahasa ape...Paduwa mahajanathawage..

    Reply : 0       0

    Roshan Wednesday, 28 November 2012 05:07

    Last month Colombo/Dubai flight was cancelled for three consecutive days, all the passengers who bought ticket at Rs.17,000/- were sent by Sri Lanakn Airline which charged 21,000/-. The difference were paid by Mihinlanka to Sri Lanakn Airline.

    Reply : 0       0

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