Srilankan Airlines Says No Outside Funding In The Last Two Years

(CTN News) – In the last two years, SriLankan Airlines says it has not received outside funding.

There was also a foreign exchange loss of LKR142.6 billion experienced by the airline as a result of the sudden depreciation of the Sri Lankan rupee exchange rate in March 2022, which led to the revaluation of net foreign currency liabilities.

On the basis of the audited financial statements and before the occurrence of any losses caused by exchange fluctuations, LKR1.7 billion was made by the group as operating profit during the year, according to the audited financial statements.

SriLankan Airlines said in a statement that this is a significant achievement considering the issues faced by Srilankan Airlines worldwide during that period. This is because of the pandemic, which disrupted flights worldwide.

During the recent COPE meeting in the Parliament, Srilankan Airlines presented its unaudited dollar financial statements for the recent financial year ended in March 2023. This is the most recent financial year for the airline.

According to Srilankan Airlines, during its recently completed fiscal year, the company generated USD994 million in passenger and cargo revenues, resulting in an operating profit of USD53 million and a net loss of USD4 million.

At the group level, there was an operating profit of USD104 million. The group, however, incurred financing costs of USD101 million, resulting in a net profit of USD3 million as a result of the financing costs.

While these figures may vary slightly as year-end accounts are finalized, the airline has finally been able to break even for the first time in over a decade for the airline.

In the recent COPE meeting, SriLankan Airlines’ Chairman stated that the airline has not received any funding in the past two years, and continues to operate on its own cashflow.

In order to maintain the best operating margins in the industry, the airline maintains a reasonable operating budget.

There is no doubt that these will be stronger in the year ahead as the country moves forward from the challenges that were faced in 2022.

The country’s financial situation and the extremely high prices of financing are the two biggest challenges that must be dealt with in the future, as discussed at the COPE meeting.

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