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SriLankan Airlines notches Rs.1.12bn profit in nine months ended Dec. 2023
National carrier SriLankan Airlines has managed to move towards the positive territory, as it recorded a profit for the nine months ended December 31, 2023.
The airline, which is in the process of being privatised, reported a profit of Rs.1.124 billion for the nine months ended December 31, 2023, the 2023 budget position report showed.
For the full financial year ended March 31, 2023, 2022, 2021 and 2020, the carrier recorded a loss of Rs.73.26 billion, Rs.165.89 billion, Rs.45.23 billion and Rs.47.19 billion.
The official data showed that SriLankan Airlines recorded a revenue of Rs.248 billion for the nine months through December 31, 2023. Expenditure for the period recorded Rs.223 billion, leading to an earning before tax of Rs.24.5 billion.
The data showed the airline recorded an exchange loss on transaction of Rs.603 million, which for FY22/23 was Rs.25 billion. While the interest cost amounted to Rs.26 billion, an exchange gain on loans and fixed deposits conversions of Rs.3.15 billion for the nine months ended December 2023.
The accumulated loss of SriLankan Airlines stands at Rs.611.2 billion.
The government offered assistance by issuing a US $ 11.6 million treasury guarantee to the International Air Transport Association (IATA) on behalf of SriLankan Airlines, to support its ongoing cash flow issues during 2022/23.
Further, in order to settle the outstanding balance of Rs.102.5 billion to Ceylon Petroleum Corporation, the General Treasury infused additional equity capital to SriLankan Airlines in December 2023, as approved by the Cabinet of Ministers.
The impact of the financial constraints of SriLankan Airlines has clearly manifested in the disruptions to operations evident over the recent past, the report highlighted.
As the government’s fiscal constraints make it difficult to continuously inject equity capital to the airline, to ensure its continuity, the government took the decision to divest the national carrier. This was essentially to enable a fresh injection of investor funds to restore the financial sustainability of the airline.
Earlier in March, Aviation Minister Nimal Siripala de Silva urged the airline to step up efforts and improve its financial performance, else face consequences.
He stressed the need for the carrier to trim costs and improve financial discipline. Failing to do so would put the jobs of 6,000 employees at risk, the minister cautioned.
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