COPE orders SriLankan Airlines president to submit business plan
Yesterday (06), Chairman of Public Enterprise Committee (COPE) Professor Charitha Herath asked SriLankan Air Lines Chairman Ashok Pathirage to prepare a comprehensive business plan to make SriLankan Airlines Limited profitable and submit it to COPE within a month.
The Committee also recommended to the Secretary of the Ministry of Tourism to study the current situation and to submit a report to the ministerial level within one month.
The Committee further recommended that a committee of experts be appointed to conduct an in-depth study and submit a report as much as previously.
It was revealed at the COPE meeting that SriLankan Airlines Limited’s loss as of March 31, 2021 from the day it was taken over by the government was Rs. 372,015 million.
The company’s total loss as a result of taxes in the year 2020/21 was Rs. 45,674 million and the operating loss has also increased, said committee chairman Professor Charitha Herath.
This is due to the impact of the current Covid 19 situation, as well as rising jet fuel costs, aircraft rental costs, and other operating rental costs.
The Committee observed that the unfavorable capital conditions of the Company had reached a critical level as of March 31, 2021 and was therefore faced with a problematic situation regarding its operations without the assistance of the Treasury.
Ministers Mahinda Amaraweera, Ministers of State Ajith Nivard Cabraal, DV Chanaka, Indika Anuruddha, MPs Rauff Hakeem, Patali Champika Ranawaka, Eran Wickramaratne, Harsha de Silva, SM Marikkar, Jagath Pushpa Kumara, Jayantha Samaraweera, Premnath C Dolawatta. Rasamanikkam were present at this meeting.
The Committee observed that Cabinet had approved an additional investment of $ 500 million in cash by 2020, of which $ 240 million had already been paid to the Company. The Committee also paid special attention to how the money was used.
The Committee also observed that a senior executive at Sri Lankan Airlines as of March 31, 2021 received a monthly salary of Rs. 3.1 million and 82 pilots received a monthly salary of over Rs. 02 million, 142 other pilots, 12 aeronautical engineers, 09 engineering directors and 3 senior executives of Sri Lankan Airlines receive a monthly salary of between Rs. 1 million and Rs. 2 million.
The President also underlined the need to maintain this service as a national airline.
The committee also revealed that Sri Lankan Airlines’ daily loss was Rs. 84 million and that a systematic plan was needed to make the business profitable.
The Committee commended Sri Lankan Airlines for reducing costs by USD 66.9 million in 2019/20 and 2020/21.