Photo Credit: Andy Mitchel
Sri Lanka Government has decided to channel Rs.13.2 billion from two local state banks in a bid to save the financially struggling Sri Lankan Airlines.
According to local news paper Sunday Times, The Airline that made Rs.4.4billion profit in 2008 has recorded an accumulated loss of Rs.170 billion in the current fiscal year. In June 2017, the President has given an ultimatum till September 2017 to the board of directors to turn around the company or leave the board, but no progress has been made till today.
The Airline has been unsuccessful in persuading foreign investors to come in to restructure the national carrier under a public private partnership. In 2010, Emirates sold its 44% stake in SriLankan Airlines for $53 million, suffering a loss of almost $20 million on the original purchase value, and $100 million on the value evaluated two years ago and walked away. Ever since none of the Airlines around the world showed interest in investing in Sri Lankan Airlines.
As losses are mounting and no progress has been made, the Government decided to give a final lifeline by injecting Rs.13.2 Billion for the National Carrier.