ECONOMYNEXT – SriLankan Airlines was asked to show better performance by Aviation Minister Nimal Siripala de Silva following government support to strengthen its balance sheet, a ministry statement said.
The government was taking out 510 million US dollars out of 1.2 billion US dollars in debt, and the airline has to show better performance in the next six months Minister de Silva had said, during a meeting with the management and trade unions on March 11.
Separately the airline has also been promised 60 to 70 million dollars of working capital support, Minister de Silva said earlier this month.
The airline should to cuts costs and maintain financial discipline in the next six months, if not jobs of 6,000 employees are at risk, he said.
Sri Lankan Airlines now had a fleet of 16 aircraft operating 06 long haul routes and 29 short haul ones, officials had said.
Related SriLankan Airlines debt of US$510mn to be taken over by govt
SriLankan Airlines started to show big losses after then President Mahinda Rajapaksa had a dispute with then managing shareholder Emirates and cancelled the visa of its chief executive.
The airline is on track to be privatized. (Colombo/Mar12/2024)