31 October, 2020

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Govt. In Deeper Crisis, As SriLankan Unable To Pay $ 1 Billion Debt

The debt ridden national carrier, SriLankan airlines is dragging an equally debt ridden government into a fresh crisis having no way of paying up a nearly US $ 1 billion debt.

Ranil WSpeaking in Parliament on Wednesday, Prime Minister Ranil Wickremesinghe disclosed that within the next six weeks, his government will have to decide if the government had the capacity to absorb this debt, else the future course of action that should be taken to address this issue.

“Minister Kabir Hashim has informed me that this debt could be higher,” Wickremesinghe said.

The national carrier ran into huge debt under the chairmanship of Nishantha Wickramasinghe, the brother in law of former President Mahinda Rajapaksa.

Early this month, Wickremesinghe revealed that his government was trapped in an almost Rs. 10 trillion debt, mainly left by the previous Rajapaksa administration.

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    [Edited out]

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      where is your comments?

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    The problem with Sri Lankan is that the airline does not have competitive rates with other airlines. Example – Emirates airline. A flight to Sri Lanka from anywhere costs much less on Emirates than on Sri Lankan. No sane person will pay a few hundred dollars or Euros to fly on Sri Lankan when they can fly on Emirates, Etihad or Qatar. If Sri Lankan brings down the fares, the airline will be more competitive and might be able to bring in a profit. Bring down the airfares and pay less to the airline staff – no double dipping for the flight crew etc, etc. A former CFO needs to take charge of the airline to bring it back to raking in the profits.

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      Bringing down fares may only help in filling the Cabin but not necessarily towards Profits or Break even situation.Pricing of Air fares is a complex process and competitive fares are only one factor.The other carriers as mentioned can afford to offer lower fares given the economies of scale of their operations while SriLankan do not have such luxury.An airline riddled with such Debts as a first step should take all the possible steps in curtailing Costs instead.

      As for Pricing on SriLankan services one gets the feeling that there is no one quite capable of managing this particular Area.Pricing and Yield Management are critical areas of the Airline which should be managed by Professionals in the respective fields who would not hesitate to take necessary actions however unpopular they may be with the Field Offices or even the Trade.

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    Just try to book a flight on Srilankan website. How can they survive in this competitive market?

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    lost will definitely put on conmen average people those who have never see or travel even flight or plane

    what a sad consequence

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    good time to recover due to low oil price in world market

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    Comment by F de Silva it is rather interesting to note…….what is petty that line of politics has been learn from platform and “parliamentary political democracy” in our Island by F de Silva!
    I am compelled ignored gossips speak by F De Silva!

    Under MS political regime being to power by power brokers of CIA and RAW having common cause, the common origin and deep common roots of the ongoing political -economic and social crisis is very very clear.

    Specially if we look at three of them UNP-Ranil..W…. MS and CBK in their interrelation of that their science of politics and nature of the class that demands that politics be looked at be same. It is absurd to think even present economic, political and social catastrophe of three such crisis could not produced by artificially.

    In the second place ,it is instructive to grasp what each one of issues has been arise since 2015 January 9th , common with others and what was its specific features are well known by majority people.

    Needless to say what is common to all three is a mass dissatisfactions overflowing all bounds ,a mass resentment with newly corrupted Comprador Bourgeoisie Regime ( by UNP headed, Section of SLFP back by MS & CBK, – others TNA, JVP and Muslim Congress-MC)
    in centre of state and their so-called “good” Government.

    Whoever public forget last 15 months since 2015 January 9th, who call themselves “honest and good” ,who know something about their past (UNP Ranil…W.. CBK and MS )and present character of politics of class struggle in Sri Lankan democratic revolution, that think about the feature of our democratic sustsnibility of capitalism in wrong footing of epidemic of credulity.

    All three of crisis manifested some form of Neo-colonial demonstration that By Indian penetration and influence is New in post-modern independent 1948-Ceylon which history of our democratic revolution and reforms.

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      Mr.piyadasa does your comment make any sense.what is being discussed is about srilankan airlines debt you are writing about this government coming to power.it would not be an exaggeration if one can blame previous government which ruled the country for a decade and it has left economy in shambles.mahinda has the temerity to say that he completed airport project,southern expressway in record time as if these projects are earning income.on the contrary these are white elephants.airport constructed in hambantota is being used to store grains.srilankans have to realise that they live in globalized world
      They can’t depend just on tea and garments for fireign exchange and jobs.they need to diversify and start leveraging their strengths or else sooner or later economy will take a big hit.

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    Yeah! you jack ass cannot pay 1billion but increase benifits for the stupid ministers. Nice theory! Bring more vehicles to the jack asses who is not worth a dime.

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