SriLankan: 51% of the losses was accumulated interest

19 June 2018 08:08 am

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)