SriLankan’s billion dollar debt mostly to govt. - chairman
June 22, 2020 05:42 pm
SriLankan Airlines is nearly a billion dollars in debt and the majority of it is owned by state entities, says its Chairman Ashok Pathirage.
The national carrier owes USD 220 million to the Bank of Ceylon, USD 187 million to the People’s Bank, and another USD 275 million Ceylon Petroleum Corporation (CPC), said Pathirage.
While the directorial board including him estimated that they would be able to turn around the loss-making airline within a year, the COVID-19 pandemic hindered those plans, the Chairman added.
In 2019, SriLankan Airlines had recorded a loss of USD 130 million.
Pathirage said that the airline suffered major losses due to the shutdown of airports due to the COVID-19 pandemic.
However, a plan has been presented to the Cabinet of Ministers and discussions are underway to restructure the loans, he added.
On March 19, 2020, Sri Lanka shut down its airports to curtail the entrance of the novel coronavirus into the country. They are decided to be reopened on August 01, 2020.
