SriLankan Airlines operating loss improves in 2015

Sri Lanka's Central Bank, in its 2015 Annual Report, stated (26-Apr-2016) SriLankan Airlines reported the following financial highlights in 2015:

• Total operating revenue: LKR116.1 billion (USD854.8 million), +0.5% year-on-year;
• Total operating costs: LKR126.6 billion (USD932.2 million), -12.3%;
• Operating profit (loss): (LKR10.6 billion (USD78.0 million), compared to a loss of LKR29.0 billion (USD213.5 million) in p-c-p.

*Based on the average conversion rate at LKR1 = USD0.007363

The Bank noted that SLA's operating loss declined in 2015, largely due to the drop in operating expenditure supported by declined fuel prices, despite its accumulated losses. The total expenditure decreased as a result of the significant drop in expenditure on fuel with low global fuel prices, while the increase in total revenue was supported by increased passenger load factors and expansions in operations to key routes. The Bank commented: "SLA has incurred an accumulated loss of LKR132.6 billion since 2009 while total gross liabilities to the banking sector also has increased by LKR24.0 billion to LKR33.0 billion during 2015. Hence, there is a need to take urgent measures to improve the operational efficiency through required reforms to convert SLA into a financially viable entity." [more - original PR]