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    SriLankan Revenue increases in First Quarter

    August 12, 2014

    SriLankan Airlines (SLA) has entered into the One World Alliance to expand its global presence by linking over 800 new destinations worldwide.

     

    In accordance with the Government’s policy to position Sri Lanka as an aviation and a tourism hub, SLA was recapitalized in line with the 2014 Budget Proposals to strengthen its financial position enabling it to make an effective contribution to the aviation and tourism sectors. In 2014,the Government infused Rs 19.81 billion by way of Treasury Bonds in part fulfilment of the Cabinet decision of 2011 to infuse capital to SLA totaling USD 500 million(or Rs. 60 billion) over a five year period commencing 2012.By end April 2014, the Government has provided capital amounting of Rs 46.69 billion to SLA.

     

    In addition, SLA obtained a syndicated loan of USD 150 million in April 2014 for a period of five years(with a government guarantee of USD 50 million) the proceeds of which were used to settle USD 112.5 million outstanding loan obtained from Meshreq Bank UAE.In June 2014, SLA successfully issued an International Bond of USD 175 million with a 100% sovereign guarantee for the purpose of raising funds for working capital requirements and re‐fleeting purposes. SLA’s revenue for the first four months of 2014 increased by 2 percent to Rs. 27.8 billion compared to Rs. 27.4 billion in same period 2013.

     

    However, SLA’s operating loss for the period was Rs8.4 billion and the accumulated loss amounted to Rs82 billion. With the re‐fleeting programme expected to be carried out over the next 7 years period and the marketing and promotional strategies to be launched, SLA expects to break even by 2020. (ST/KH)

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