Sri Lankan government looking for a new management cum stakeholder partner for SriLankan
The Finance Ministry of Sri Lanka has announced that the government is looking out for a new management cum stakeholder partner for the national carrier, SriLankan Airlines.
The national carrier has reportedly suffered a loss of Rs. 28.4 billion in the eight months to August 2017, which is an increase from Rs. 12.6 billion during the corresponding period in 2016.
The Fiscal Management Report submitted by the Finance Ministry along with the 2018 Budget states that the increased losses were due to an additional cost of Rs. 14.3 billion incurred due to cancellation of three aircraft (A350-900) on lease agreement.
The closure of the Bandaranaike International Airport during day time for first three months of 2017 which cancelled around 600 flights during the period, added to the losses.
“However, there is an agreement to purchase brand new four aircraft (A350-900) which are to be delivered in 2020. The Cabinet has appointed a special ministerial committee to make final decision in this regard,” the report has stated.
The report states that the total government revenue increased by 15.7% to Rs. 1,172.4 billion in the first eight months of 2017 compared to Rs. 1,013.4 billion in the same period of 2016.
Tax revenue increased by 17.5% to Rs. 1,094.9 billion while non-tax revenue declined by 4.9 per cent to Rs. 77.4 billion.
The report has further noted that revenue from liquor eased by 5.9% to Rs. 73.6 billion in the review period due to declined consumption resulting with increased excise duty rates on liquor products. As for revenue from cigarette products, there has been a decline by 8.1% to Rs. 54.6 billion due to lower production owing to increased tax rates on cigarettes.
OSL take:
Since Sri Lanka’s national carrier, SriLankan Airline is looking for a stakeholder partner, it is an opportunity for interested parties in the aviation industry to reach out to the government and explore the option of forming a joint venture.
| Article Code : | VBS/AT/21112017/Z_3 |