Hon. Chaminda Wijesiri,—To ask the Minister of Finance, Planning and Economic Development,— (1)
(a) Will he inform this House of the —
(i) amount of profit made/loss incurred by Sri Lankan Airlines from 2015 to date separately according to each year;
(ii) reasons for the profit made/loss incurred by the Sri Lankan Airlines during the above-mentioned period; and
(iii) steps that will be taken to maintain Sri Lankan Airlines in a state of not incurring losses?
(b) If not, why?
Asked Date
2025-01-22
Asked by
Hon. Chaminda Wijesiri, M.P.
Ministry
Finance, Planning and Economic Development
Legislature
Tenth Parliament of the D.S.R. of Sri Lanka
Session
First Session
(a) (i) Amount of net profit/loss incurred by Sri Lankan Airlines from 2015
|
Year |
Rs. Mn. |
|
2014/2015 |
(16,494.66) |
|
2015/2016 |
(12,621.69) |
|
2016/2017 |
(28,929.99) |
|
2017/2018 |
(17,213.57) |
|
2018/2019 |
(44,022.67) |
|
2019/2020 |
(47,197.86) |
|
2020/2021 |
(45,231.46) |
|
2021/2022 |
(166,369.68) |
|
2022/2023 |
(73,621.53) |
|
2023/2024 |
3,870.86 |
(ii) In the years 2014 and 2015, in addition to the mismanagement and politicization of the institution, there was a hike in global fuel prices.
In addition to the previously mentioned reasons, in 2015/2016, the temporary closure of the Bandaranaike International Airport affected the profitability of the institution. Then, in 2016/2017, the institution had to pay compensation for cancellation of Aircraft Lease Agreements. In 2018/2019, there was an unexpected high interest cost, which the entity had to absorb. In addition to the previously mentioned reasons, in 2019/2020 - these are compounded and have been coming down year after year - due to the Easter attack and international travelling getting affected due to the COVID-19 outbreak, the situation further worsened and caused a lesser number of tourist arrivals.
In 2020/2021, due to the continuation of the previous reasons as well as the international travelling ban due to COVID-19 restrictions, a loss was incurred. In 2021/2022, there was a loss of Rs. 166 billion due to the compounding effect of the previously mentioned reasons such as mismanagement, politicization, hike of fuel costs and also the continued challenges due to the COVID-19 outbreak, resulting in reduced travels. In 2022/2023, in addition to the continuation of the compounding effect of previous reasons, the depreciation of our currency, the exchange rate crisis and the economic turmoil affected the profitability of the institution. Then in 2023/2024, there was an extraordinary exchange gain; as a result of the gradual recovery of the economy, the entity had recorded an exchange gain, resulting in a profit of Rs. 3.8 billion.
(iii) A comprehensive Business Plan approved by the Board of Directors will be submitted to the EGM for consideration and approval of the shareholders, and based on that, future courses of action will be decided.
(b) Does not arise.
Sir, I also table* the detailed Answer for the Question.
Answered Date
2025-01-22
Answered by
Hon. (Dr.) Harshana Suriyapperuma, M.P.
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