- Persistent financial challenges and legacy issues weigh on airline’s performance
- Government continues to provide financial support to ensure operations
SriLankan Airlines has recorded a Rs 12.9 billion net loss in the first three months of the 2024/25 financial year (FY25) due to persistent cash flow challenges influenced by legacy operational issues and financial costs from past debt, the Finance Ministry said.
According to the Mid-Year Fiscal Report, SriLankan Airlines earned total revenue of Rs. 63.8 billion for the first three months of FY25, which is 12.7% less compared to Rs. 73.1 billion earned in the same period of FY24.
The airline recorded a profit before tax of merely Rs. 0.6 billion in the first three months of FY25, compared to Rs. 8 billion in the same period of FY24 (excluding finance charges and exchange differences).
After adjusting finance chargers and exchange differences, the Group reported a net loss of Rs. 12.9 billion in the first three months of FY25, compared to Rs. 25.8 billion net profit recorded in FY24.
“The General Treasury has regularly provided equity injections and other measures such as loan guarantees to support the operations of the SriLankan Airlines,” the Finance Ministry said.
In March, the Cabinet of Ministers approved the transfer of Treasury-guaranteed debt of SriLankan Airlines amounting to $ 210 million and Rs. 31.4 billion (equivalent to approximately $ 100 million) to the government’s balance sheet.
The report said that, to safeguard the national carrier, the government has offered assistance by providing a Rs. 5 billion equity contribution to the airline to support its ongoing cash flow problems in the first six months of 2024.
Last month, speaking to foreign media, SriLankan Airlines Chairperson Sarath Ganegoda said that President Anura Kumara Dissanayake has instructed to abandon the plans to privatise the airline and has plans to restructure under a viable plan.
- https://www.themorning.lk/articles/JxnNj62AB1Aw71NgAXpe
