Sri Lanka’s airline posts US $ 525mn annual loss

13 May 2023 04:43 am - 53 - {{hitsCtrl.values.hits}}

A A A

National carrier is biggest and most expensive of cash-haemorrhaging state companies
Nation’s unprecedented financial crisis posed a greater challenge to airline, says Chairman Pathirage
Says hopes ‘restructuring’ would make SriLankan viable

AFP: Cash-strapped Sri Lanka’s national airline announced a staggering US $ 525 million annual loss yesterday.

With nearly 6,000 staff, SriLankan Airlines is the biggest and most expensive of the cash-haemorrhaging state companies that have drained the budget and compounded the worst financial crisis in Sri Lanka’s history.

The bankrupt South Asian island’s US $ 3 billion bailout by the International Monetary Fund requires Colombo ‘restructure’ — a euphemism for privatise - the airline along with another 51 loss-making state enterprises.

The carrier lost 163.58 billion rupees (US $ 525 million) in the year to March 2022, it said in a statement - more than three times its deficit in the previous 12 months, when air travel was hit by the Covid-19 pandemic.

The airline missed interest payments on a US $ 175 million bond in December, eight months after the government itself defaulted on its sovereign debt after running out of foreign exchange.

The nation’s unprecedented financial crisis ‘posed a greater challenge to the airline, as it was only beginning to recover from the largest challenge faced since its inception, the pandemic’, Chairman Ashok Pathirage said.

Pathirage said he hoped ‘restructuring’ would make SriLankan viable but did not discuss plans to sell off the carrier.

Questions have been raised over whether private investors will be willing to pour money into the firm.

Sri Lanka’s economic crisis caused months of food and fuel shortages and at its peak a furious mob stormed government buildings and chased the former president into exile.

To try to shore up state revenue, the government has doubled income taxes, increased electricity tariffs and removed fuel subsidies.

The country’s flag carrier has not turned a profit since 2008, when its chief executive was sacked by then-president Mahinda Rajapaksa for refusing to bump fare-paying passengers to make room for members of the leader’s family returning from a jaunt in London.

Comments - 53

Bernard Jayatilake Saturday, 13 May 2023 07:50 AM

The current Head of the airline is a political appointee by the former ruler besides being Chairman of affiliated listed companies which are run on a break-even level and it is his responsibility to step down from the politically-appointed post as he had the unprecedented privilege to open supermarkets with liquor licences across the Colombo metropolis thanks to the patronage from the ex-ruler.

Poochie Baba Saturday, 13 May 2023 08:20 AM

About time to privatize before all is lost!!!

Ram Saturday, 13 May 2023 08:28 AM

Emirates did a good job. Then leader sacked Emirates over a personal issue and since then Sri Lankan going down. No wonder thanks to our political leaders our country is in the doldrums

Sivalingam Saturday, 13 May 2023 08:30 AM

Lalith Kotelawala may have been a better chairman . SL keeps scraping the bottom of the barrel.

Sunil Saturday, 13 May 2023 08:31 AM

Air India sold to private company. Why don't SL govt not doing this. Only mass corruptions

Sam Silva Saturday, 13 May 2023 05:56 PM

We won't be able to give even free.

Joel Saturday, 13 May 2023 08:32 AM

And we have expatriate CEO for whom sure we are giving a thumping amount!!!! On top of the politically appointed stooges who are drawing big salaries. Frequently breaking down flights, flights with cleanliness equal to a public toilet, air stewards who serve unlimited liquor and give all freebies to all their relatives and friends flying ..... Ya of course it will run at a loss!!!!

Do not joke always Saturday, 13 May 2023 08:45 AM

The only old air line making loss due to its Government policies. It is the government to get rid of the over staff and hand over to private sector (if any) or scrap and air line free country.

Richard Saturday, 13 May 2023 09:06 AM

Former President Rajapaksa Famil members are employed and withdrawing big salaries

Unchikun Saturday, 13 May 2023 09:10 AM

This is funny. During the last Committee on Public Enterprises (COPE) hearing the bootlicker CEO and Chairman of Sri Lanka claimed Srilankan had made a profit. They where in fact making a case to lease more aircrafts and further boost the Rajapaksa (Ranil) vaults.

Sam Silva Saturday, 13 May 2023 05:36 PM

COPE all are working the government and they are on the same payroll. It is just show the public only.

Travis fox Saturday, 13 May 2023 09:12 AM

Thanks to mahinda for kicking out emirates. Good job now face the consequences..

Truth Saturday, 13 May 2023 09:30 AM

Do we really need it. SL Airlines is the biggest employer of a workforce that doesn't require any brain or physical strain. One can see the huge numbers in the Airport just jiggling without any work.

ama Saturday, 13 May 2023 10:02 AM

Aiyoo, NO problem..... Raja Horu can pump enough money.

Shera Saturday, 13 May 2023 10:16 AM

Six thousand staff?? Are you kidding me? What work do they do?

Punchi Saturday, 13 May 2023 10:42 AM

Not to worry, IMF, Indian, China and Bangladesh loans which we can avoid repaying can cover the loss. We must also reward airline boss and employees for sterling results with increased salaries and bonuses

Dee Saturday, 13 May 2023 11:08 AM

As long as the unions exist- all state enterprises will make losses!

Lankaputha Saturday, 13 May 2023 11:17 AM

1.5 M usd per day... 450 M lkr per day..how come? 6000 employees. Do the maths. Worth laying off all and still more profitable

diss Saturday, 13 May 2023 11:20 AM

please close this down, not even privatize worth, even giving free ticket to all passengers travelling in Sri Lankan airline will not cost 10% of this loss 6000 employees to operate 21 flights ......?

Nimal Perera Saturday, 13 May 2023 11:32 AM

Sri Lankan Airlines was doing well under Emirates management until the Rajapaksa's destroyed it by using it for their family's personal use.

Culture is to fail cannot blame politican created by the culture Saturday, 13 May 2023 01:43 PM

It was not Mahinda that ruined Sri Lankan, but the cultural attitudes of Sri Lankans. Airline is best run by overseas people, and staff recruited from overseas. Blaming one Sri Lankan politician for it's failure is pointless. Sri Lankan Airlines is the epitome of a downwards going nation.

M perera Saturday, 13 May 2023 11:37 AM

Lets take a moment to thank Mahinda and the regime. But wait our people have memory issues.

Mahinda saved us from LTTE, our suffering is nothing compared to his greatness Saturday, 13 May 2023 01:44 PM

Too easy people forget about Mahinda achieving what no one else in history had managed. Defeating the LTTE. A few hundred thousand people staving is the price for his way of doing things, but majority of people don't mind a million children going backwards as Mahinda is like a god to them.

Citizen Saturday, 13 May 2023 11:53 AM

Rajapaksa family brought down Sri Lanka to its knee, shamelessly still sticking to politics. Every time they say restructure and losing heavily, the chairmen should be sacked immediately and airline should be sold to 51 share to Emirates, this can improve the air line, run on profit and will boost tourism. What are we waiting for? The public can't efford any more burdens.

Andare Saturday, 13 May 2023 12:24 PM

WHY ARENT WE HANDING OVER THE RUNNING OF THE AIRLINE TO MAHINDA RAJAPAKSA? HE MAY BE ABLE TO APPOINT HIS FAMILY MEMBERS AND STOOGES AND REORGANISE THE INSTITUTION TO RUN AT A PROFIT !

No need for Rajapakse or Rajapaksa to be involved they no good Saturday, 13 May 2023 01:40 PM

Rajapaksa or Rajapakse they are all on the same route as Sri Lankan. Utter failures, who are ruining the country through bad practices if not corruption.

Senadhipathi Saturday, 13 May 2023 12:24 PM

When Thuggery, Intimidation and self interests are at the core of every Phottuwa governing decision, what more can idiots like us, the people, expect? The decision to kick out Emirates management was Old Maina`s personal revenge built on his misconceived self importance. Now, we idiots; have to carry his crap for him.

Confused Saturday, 13 May 2023 12:31 PM

Ashok Pathirage was handed the Airline to see some change in the eternal loss making liability ? But the rot seem to be continuing and he has not brought any difference ! Why is he hanging on to the post without quitting?

M. Sarfaraz Saturday, 13 May 2023 01:28 PM

More then family issues, Emirates and Etisalat and any Arab, Muslim related involvements were made to be discredited due to arrogance

Sri Lankan is on flight path to the desitnation of continued failure Saturday, 13 May 2023 01:39 PM

Too long Sri Lankan speaks to optimistically. It is a complete failure, just like CEB, or CeypetCo with just too many staff. Cutting staff drastically and hiring, from anywhere even internationally rather than recruiting for the less able types in Sri Lanka is vital. All the while Sri Lankan talks about upwards trajectory, always about buying more planes as it is making great profits. Even Ranil shutdown their crazy plans to buy more planes. Closing down the airline tomorrow will give the country more saving of revenue. There will be plenty of other airlines that will take up its slots, or those can be sold up beforehand, or best yet just auction it off at any price, just above it's total asset value.

Saman Saturday, 13 May 2023 01:50 PM

Merge with Fits Air. At least Mr.Peter Hills come forward to rescue

lester Saturday, 13 May 2023 02:27 PM

Give the CEO job to Peter Hill. He will turn around the airline

Ceylonese Saturday, 13 May 2023 02:33 PM

It is beyond belief that a premier airline owned by the Government of Sri Lanka currently called Sri Lanka Airlines with an history of nearly 45 years of sevice in the airline industry does not own a single airplane but has to lease airplanes second hand from other sources in the aviation industry. I had the scariest experience of flying from Singapore to Colombo in a former Air Jordan plane leased by Air Lanka which was rattling all through the journey but managed to land at Katunayake in one piece.

Kevin Saturday, 13 May 2023 03:17 PM

They told COPE recently they made a small profit!

Raymon Saturday, 13 May 2023 03:30 PM

Every airlines in the world making money after the pandemic is over . Emirates paid 24 weeks bonus to all the employees . I repeat 24 weeks salary to all the employees . Airfares are so high now and if we cant’t make money now the airline will never make profit .

Sunil Saturday, 13 May 2023 03:45 PM

Eran Wickremeratna said in Parliament that Sri Lankan Airlines planes must be grounded immediately as it is a burden on every Sri Lankan. But it carries on to benefit a few privileged connected people. What is COPE doing ? Can't they pressurise the government to ground the planes immediately and save the nation.

Reza Saturday, 13 May 2023 04:30 PM

First charge those who kicked out Emirates.

DJ Saturday, 13 May 2023 04:57 PM

Nothing New, keep making a losses and still continue

Ranga Saturday, 13 May 2023 06:10 PM

The country’s flag carrier has not turned a profit since 2008, when its chief executive was sacked by then-president Mahinda Rajapaksa for refusing to bump fare-paying passengers to make room for members of the leader’s family returning from a jaunt in London. Downfall of Sri Lanka

Airlines fools can't even figure how to buy spare parts Saturday, 13 May 2023 06:35 PM

The airline is like a government department. Totally for providing employment, and keeping staff like they are government employees, instead of getting rid of as many as possible where they are massively over staffed. Sri Lankan is also failing to get spare parts for their planes because they want to pay low price for parts. They have to wait in endless queues while other airlines pay premium prices, but get their parts sooner. Others are willing to bid up like in auction to their limit on prices, again those airline businesses become much more profitable by having all working airlines. Overall, having parts means other airlines have less service disruptions to say the least. When will Sri Lankan be run like a modern, profitable western type airline?

Wije Saturday, 13 May 2023 07:18 PM

If we would have continued with Emirates probably Katunayake would have been one of their hubs in Asia

Deraniyagala Peris Saturday, 13 May 2023 08:17 PM

Time to privatize this and let ministers row their own boats if they want to go on free trips. What a shame, Emirates was managing it nicely and somehow our bunch managed to screw it up also. Sri Lanka, at the moment has no image to cherish, so no need for national airline.

Mandayan Saturday, 13 May 2023 09:08 PM

Mahinda’s brother in law - Shirani’s bro- brought it down!

Gunapala Aussie Saturday, 13 May 2023 09:34 PM

Mahinda alone didn’t bring down the airline. At least by finishing the 30 year old war, Mahinda paved way for tourism and better prospects. But the ATTITUDE of ALL SRI LANKANS is the cause for downfall of the country. People rejected Mahinda in 2015 and gave power to Yahapalanaya but what happened? Lots of new bonds and no development. So the country lost the momentum it was gaining after the war. Someone in tourism knows this. And the current Parliament consist of new faces for more than 50%. That includes young people and professionals. They are worst. As a Sri Lankan, what have you all done? What’s your attitude? Also Emirates showed profits by selling and leasing back its assets - air planes. The operational profits were still loss during that period. Now no airplane to sell. This is the bitter truth.

Yogan Prabaharan Sunday, 14 May 2023 04:02 AM

The operating condition for the airline has improved evidenced by registering of a small operating profit frst time in 15 years for the airline.This is a welcoming news and will help to make a good selling proposition to any prospective buyers if a decision is made to privatise the airline.The reason for the massive net loss for the financial year ending Mar 2022 is because of massive debt overhang and accumulated losses in the past running into billions in dollars and debt ridden balance sheet.The only solution is to privatise the airline.Selling the airline to Tata or Emirates to the entirety would benefit the country.For those thinking along the lines of losing national carrier be reminded that Qantas is not owned by Australian government and why not SL bother too much privatising.Selling the airline altogether is benifical to the country given current state of finances

Always Sri Lankan Sunday, 14 May 2023 07:48 AM

Response to Gunapala Aussie; The attitude of the Sri Lankan`s have nothing to do with all wrong political decisions of the corrupt Rajapaksha clan. To answer your question to all Sri Lankans; `As a Sri Lankan what have you done?` Well, for a start Gunapala Aussie, Just like you, I have run away to Australia too!

Dravid Bakmeena Sunday, 14 May 2023 10:55 AM

Very confusing, when only 3 weeks ago the news said the Airline made a profit of 3 M USD and COPE said they are doing a good job? The management of the airline has no experience at the top including the senior managers who run everything. This airline has much potential given the strategic location as its base. Government needs to even with difficulty wipe off at least 50% of the losses and get someone to buy it. This cant go on as state of the aircraft, facilities are just appalling. sell it now and let some people who know the airline business run it and turn this around.

TD Sunday, 14 May 2023 11:02 AM

Please try to read between the line. Instead of using plus, they used negative when declaring the results. So one will be interested buying SriLankan and we can keep our own airline.

Dream shattered Sunday, 14 May 2023 05:25 PM

It is loss of 1.5 millions of US. Dollars per day! Can we afford? How many jobs can be created? How many mouths can be fed? How many patients can be treated! How many industries can be started! How many development work can be initiated! How many students can be helped in higher studies. What a glorious picture can we have! All these are just dreams to satiate the comfort of a few! Everyone of the rogues have to answer to the future generation!

Dream shattered Sunday, 14 May 2023 05:25 PM

It is loss of 1.5 millions of US. Dollars per day! Can we afford? How many jobs can be created? How many mouths can be fed? How many patients can be treated! How many industries can be started! How many development work can be initiated! How many students can be helped in higher studies. What a glorious picture can we have! All these are just dreams to satiate the comfort of a few! Everyone of the rogues have to answer to the future generation!

Sksirisena Sunday, 14 May 2023 05:36 PM

6000 staff... 24 planes 4 grounded... This is a charity organization... Free pay no work for all plus bonus. What a disaster. All that tax money down the drain.

nihal Sunday, 14 May 2023 07:37 PM

453 million rupees per day, per minute Rs. 314000/-, what a colossal sum to save our national treasures

Upul Dharmadasa Monday, 15 May 2023 12:43 AM

Before you get rid of the airline, get rid of all the Directors and the excessive staff . And get rid of some of the leased aircrafts . Get rid of all the political henchmen then you can turn around this airline.

Add comment
Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.

Sri Lanka’s airline posts US $ 525mn annual loss

Comments - 53

Add comment

RECOMMENDED

Proposed wage hike Estate workers appreciated or trapped in election promise?

‘Spike in blast fishing’ poses renewed threats to Sri Lanka’s marine ecosystems

UDA owned land in Thalawathugoda; UDA Minister Prasanna Ranatunga under the spotlight for forceful occupation of reserved land

Loss-making SMIB faces political pressure in recovering loans

Baltimore Bridge Collapse: MV Dali, SL authorities anchored in mystery?

Has Sri Lanka become a potential hub for the illegal wildlife trade?

Spotlight on Moragahakanda Development Project Moragolla villagers lose livelihoods and down to one meal a day

Most Viewed in News

Col. 7 businessman arrested for assaulting Iranian Ambassador

Sajith bars Daily Mirror over liquor controversy

Foreigner injured after falling from Lotus tower

Sri Lanka cricketer to retire after World Cup & migrate to Melbourne

A leading hotel in Derby, UK sold to Sri Lankan company

Iran helicopter crash: President Ebrahim Raisi dies

MIRROR CRICKET

Starc stars as Kolkata thrash Hyderabad to reach IPL final

All teams retained and pre-signed maximum players ahead of LPL auction

Kusal Mendis secures visa to USA after delay

Former West Indies star joins Papua New Guinea coaching setup for T20 World Cup

TODAY'S HEADLINES

CB has enough dollars to prevent rising dollar value: Minister

Programme to enhance financial literacy of Sri Lankan migrant workers Organized by the High Commission of Sri Lanka in Singapore

No plans to transfer Sathosa liquor licences to Arjun Aloysius - Govt.

Political parties brace for polls

Starc stars as Kolkata thrash Hyderabad to reach IPL final

Dulan shatters world record at Para Meet

LPL auction: Matheesha Pathirana breaks record as most expensive player

All teams retained and pre-signed maximum players ahead of LPL auction