March 19, 2019

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    SriLankan Airlines net losses up by 24 percent in 2014

    March 05, 2015

    Sri Lanka's national carrier, SriLankan Airline's net losses increased by 24 percent in 2014 amounting to Rs. 32.4 billion, data in the 2013/2014 annual report submitted to parliament showed. The carrier incurred a loss of Rs. 26.1 billion in 2013.

    Operating expenditure of the airline reached Rs. 150.4 billion, an increase of 3% over the previous year's Rs. 146.7 billion.


    According to the report the loss was attributable to an increase in aircraft maintenance and overhaul costs caused mainly by mandatory aircraft modifications and expenses related to return of aircraft, which amounted to Rs. 2 billion, as well as an escalation in finance expenses which amounted to Rs. 6.2 billion compared with Rs. 3.14 billion the previous year.


    The Sri Lankan government, a committed shareholder of the airline since its establishment, had in 2012 approved an investment of up to US$ 500 million over a period of five years.


    The government provided a capital infusion of Rs. 19.6 billion (US$ 147.5 million) to the airline in 2014 under this commitment. The Government also provided a US$ 150 million bank facility in 2014 and intends to invest a further US$ 125 million in the airline during the period 2015 - 2016 as a component of the overall US$ 500 million investment envisaged.


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