Sri Lankan, Mihin Lanka suffered a huge loss (PCoI) – Let’s find Avenues for Development now

0

SriLankan and Mihin Lanka suffered a loss of approximately Rs. 163 billion since the late 2000s, the Presidential Commission of Inquiry (PCoI) on irregularities at SriLankan Airlines, SriLankan Catering and Mihin Lanka  informed on Tuesday, March 12.

Yasantha Dissanayake, Head of Financial Management at SriLankan told the PCoI that SriLankan Airlines had incurred a net loss of Rs. 143.23 billion between 2009 and 2017. Between 2007 and 2017, Mihin Lanka had incurred a net loss of Rs. 19.79 billion. During the four years under the Emirates management, SriLankan had made profits. In 2005, SriLankan made a net profit of Rs. 7.66 million, Rs. 476.5 million in 2006, Rs. 568 million in 2007 and Rs. 4.4 billion in 2008. However, the profits in 2008 were big due to the sale of some aircraft.

In 2008/09 financial year, SriLankan airline made a loss of Rs. 9.3 billion, under the Chairmanship of Nishantha Wickramasinghe. The CEO was Manoj Gunawardena. The loss was Rs. 2.69 billion in 2009/10 financial year and it dropped to Rs. 381 million in 2010/11 financial year. In 2011/12 financial year, after Kapila Chandrasena took over the CEO post, the loss increased to Rs 19.6 billion. The loss was Rs. 21.7 billion in 2012/13 financial year and it increased to Rs. 32.4 billion in the 2013/14 financial year. In 2015, there was a loss of Rs. 16.4 billion, a Rs. 12.6 billion loss in 2016 and a Rs. 28.9 billion loss in 2017.

It has been made to understand that Mihin Lanka had made continuous losses from its inception in 2007 where in 2007, the loss was Rs. 195.4 million, Rs. 3.1 billion in 2008, Rs. 1.3 billion in 2009, Rs. 1.2 billion in 2010, Rs. 940 million in 2011, Rs. 1.9 billion in 2012, Rs. 3.1 billion in 2013, Rs. 2.5 billion in 2014, Rs. 1.4 billion in 2015, Rs. 1.2 billion in 2016 and Rs. 2.4 billion in 2017.

Since the new government came into power, this has been one focus Item as the alleged losses were identified sometime back as well and now with the panel of Inquiry giving out their findings showcasing a further loss and details pertaining to same, what would be a positive move now, is to take some stern action against parties found responsible, based on the recommendations of the inquiry panel and then focus on Developing the National Airline before the regional competitors intervene into our portion of the business.