26 September, 2021

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The Sad State Of SriLankan Airlines: From Rs. 4.4 Billion Profit To Rs. 107 Billion Loss In 7 Years

The sad and shocking state of the country’s national carrier, SriLankan airlines was revealed recently by Deputy Minister Eran Wickramaratne, who disclosed that the airline which recorded a profit of Rs. 4.4 billion in 2008, took an appalling nosedive having recorded a whopping loss amounting to Rs. 107 billion, since then.

Eran Wickramaratne

Eran Wickramaratne

Wickramaratne, the Deputy Minister of Public Enterprise Development speaking in parliament underscored that the decision by the former administration led by Mahinda Rajapaksa to cancel the deal with Emirates, just because they refused to permit a large entourage of Rajapaksa onboard was a ‘huge mistake.’

He further noted that the cancelling of the deal with Emirates has led to the current shocking financial situation the carrier is embroiled in.

He also praised former President Chandrika Bandaranaike Kumaratunga’s administration for deciding to partner SriLankan with Emirates, which led to the carrier being converted from a loss making institution to a profit making one in 1998.

However, after the Government of Sri Lanka, under Rajapaksa cancelled Emirates CEO Peter Hill’s visa in 2007, Emirates pulled out of Sri Lanka in 2008, after selling their 40 percent shares to the Sri Lankan government.

“From them on, it begun to plummet, recording huge losses,” Wickramaratne said.

The deputy minister also revealed that under the chairmanship of Rajapaksa’s brother in law, Nishantha Wickremasinghe, the staff was increased by 30 percent, which contributed further to the losses.

“In 2008, the staff stood at 5113, but by 2015, this was increased to 6987,” he said. Wickramaratne also cited political appointments as one reason for this increase.

According to the deputy minister in some instances due to the over staffing, a 140 seat aircraft was handled by 300 workers.

He also added that the government’s decision to purchase A330 and A350 airbuses in an irresponsible manner, led to the further suffering of the airline.

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Latest comments

  • 62
    3

    We know everything was rotten and yet continue to be rotten in most matters that concern us in Sri Lanka, the only change since the new government was elected is the all pervading blanket of fear has lifted.

    Please tell us what you and the government have done and are doing in concrete terms to clear the rot. Please tell us what is being done to punish those guilty. We are sick of the free holiday in the State guest houses in Welikada and Mahara, being dispensed in the name of remand to those accused of serious crimes against this country.

    If there was enough cause to remand Basil Rajapakse, why is he out on bail for so long? When is Gnanasara going to be prosecuted? When is Roshitha going to be prosecuted? What is happening in the Avantgard case, of which much was made of?

    The people are asking these questions now. They are also beginning to believe a spell has been cast on this government by all the coconuts broken in Devales.

    Dr.Rajasingham Narendran

    • 32
      3

      Even if the size of the losses make up to 107 Billion, former Mafia King et al to behave the way they spoke in the recent demonstration in which even going that far ” if you cant run the govt, please give it to me”. is really beyond all limits. I think knowing that no harm will come on them, they abuse the situation further. This is ABSOLUTELY no go. Decent politicians would not behave so.

      If Germany minister of wirtschaft/Economy planning would have handled the issues the way srilanken counterparts of the previous regime done, they would not think twice but goin through all the prevailing laws, they charge the man… but why the lanken current govt stay showing a stalemate situation regarding all these LARGE scales losses, that no doubt harm every citizen even unborn ones.

      • 19
        0

        This means, current regime deliberately retards on the proper investigations of the sharks that had wasted not millions few billions of the tax payers funds –

        let us discuss why the current regime stay not taking actions on alleged high men of the previous regime ? What could they loose if they would bring the key actor to court investigations ?

      • 17
        0

        ” if you cant run the govt, please give it to me” for me to make a few more billion dollars.

        • 13
          0

          Peter what matters is why the current govt stay without investigate those high profile men rigorously – why this take that long ? we the folks thought entire Rajakashes would have been sent to jail in the first year of new rule.

          • 4
            1

            One of the reasons why is that Maithree’s grip on the SLFP is weak and therefore he has to use a carrot and stick approach to keep the hardline scoundrel supporting MPs in check. Another reason is the desire to undertake constitutional reform which needs the cooperation of all the MPs in parliament. This is why the perks of Ministers and MPs cannot be cut but instead new incentives have been offered. I am not trying to justify any of this. I think it is wrong headed to embark on constitutional reform with a bunch of corrupt politicians. It is also high time those who wont support MS but keep insisting on paying obeisance to the Rajapakshes be kicked out of the SLFP. Look to the past and how decisively Sirima dealt with these situations. All those that left the SLFP ended up in the political wilderness. The level of corruption and potential for sabotage is extraordinary. Under these circumstances relying solely on due process is the height of stupidity. But there are UNP politicians including Ranil who think this way. The consequences of this are showing up in the way senior appointments are made from those who openly supported the Rajapakshes, the foot dragging in the AGs department etc. It is apparent that Suren Ratwatte is also guilty on this count in the way he appeases the politically appointed minions of the Rajapakshes working at Sri Lankan airlines.

          • 7
            1

            With few exceptions, all Sri Lanka’s politicians and their cronies are ROTTEN AND TOXIC. This goes for the UNP and SLFP.

            Why is former CEO of Sri Lankan Nishantha WIckramsainghe and his corrupt brother-in-law Mahinda Rajapaksa not in jail for their financial crimes.

            Ranil and Sira Ayahapalanaya govt are big crooks too and have taken the people of a massive ride!

      • 1
        0

        lANKEN politicians like MR are hurting own folks and even go further hurts the wounds. Pietyless criminals… who to be blamed else senior politicians of the country and donkey folks to allow the bugger et al to abuse the nation this way… no few millions but

        over 107 000 millions… can you imagine ? Man he has ruined us all at once

      • 0
        0

        For some reasons MR et al has been little silent for thest last 7 days. May be the media culture is turning its stand to neutral next step. That is what Media men shold do right at this critical juncture of the country s politics.
        Having heard to Ranjan saying thathe has further been going through his efforts against cornering lanken crime doers. But most of his and others acts are not reported in lankan media. I believe there is media MAFIA handled by Rajaakshe supportes yet strong in the country.

    • 4
      0

      It is typical to lankens- if the article was focused on nepotism or any pitty issues related to president son s behavour or anythign was written by most self proclaimed analyst Dayan J- these CT commentators would have discussed it by adding the numbers of comments. But this has been very high issues Rajapakshes have grabed few hundred billions deliberately, not even olgio numbers of guys have added their comments ….

      why ? People seem not taking issues serious. They have become indifferent. For the underwear or condom issues have become rather important while serious money frauds aare nothing to them.

    • 6
      1

      I truly believe at the very begning the new govt should have estimated the debts of MR regime much lower than they really are. That could be the reason them to see almost everything this way by now. TOday, the govt moves very slowly… and it seems they cant hold their promises the way they made prior to the election… all in all, the country seems to be marching to a economic crisis.

      In the means time, Mahinda shamelessly behave as if he did every thing flawless – nothign cant go wrong, even today he can govern the country again. ::

      But anyone with a bird brain shold get it…. clearly, today we dont see extra vaganza shows that swallowed billions at once thought Rajpakshe had been wasting them for unecessary events.. asif he would do so using his PVT funds. Recalling the event COMMON wealth issue how he handled as if nothing would be a burden… as if srilanka is an another oil rich middle east country.::

      Today the burden left by medamlana has been a big crisis.. still the rulers seem not doing any investigation properly.

    • 6
      0

      The good thing is no one will be held responsible for the crimes committed .

      UNP will keep talking and even after one year no one even questioned as yet.

      You will be shocked to read the agreement that Nishsntha and clan signed with the angels of the flight attendants union.

    • 6
      2

      Answers to your questions:

      Q1
      there was enough cause to remand Basil Rajapakse, why is he out on bail for so long?
      A1
      Everyone should have freedom….that is why Basil is on bail and it will continue until we have to face another election.
      Q2
      When is Gnanasara going to be prosecuted?
      A2
      Patriates in yellow are above law and order in Sri Lanka
      Q3
      When is Roshitha going to be prosecuted?
      A4
      He has served due punishment and now out on bail till next election
      Q4
      What is happening in the Avantgard case, of which much was made of? swers to Your Questions:
      A4
      This matter waasseriously taken up by the FCID and after a comprehensive the case is swept under the carpet

    • 2
      0

      The obvious very well stated. But the rot continues and will continue.

    • 2
      0

      Dr.Rajasingham Narendran

      You have been demanding to know facts from the wrong person.

      Remember Eran Wickramaratne is only a politician, probably he does not know the depth of the crisis, he does not want to know or deal with the critical issues, his government must have done a backroom deal, and he also has to think about his future as politician, …………

      The other serious question is did Ernest & Young and other firms charge fees providing management consultancy (how best to swindle the company, make losses since 2008.)

    • 2
      0

      MR is absolutely a mad person to have let all this go even if he had been very clear about the high losses.
      In the same time, to abuse people s fund further as nothing was the case, and even sense to make public statements like ” IF YOU CANT RUN IT GIVE ME… I WILL DO IT BETTER”… man is either fully brain sick or… been on a joke on the nation…
      these is all about BILLIONS… there the bugger should finally show REMORSE instead further prevaricating…

      Former president – Who Do You Think You Are? Why you ve been fooling this nation ?
      It is high time you to leave explanation instead of challenging the current rulers.

  • 22
    0

    RW: Please ask Deputy Minister Eran Wickramaratne to prepare an invoice for the losses caused following the untimely dismissal of Hill and cancellation of the contract with Emirates, and present it to the Liberator. No doubt the Liberator will be able to pay immediately with a cheque drawn on a Middle Eastern bank.

    • 6
      2

      Rememeber, at the time, former Regime wanted to grab it from Emirates, people were made believe that CBK and his regime had sold out it to Emirates.
      This was really a revengeful act to paint the picture how much Mahinda Rajaakshe feel with the nation… that was a power display one above the other. But the cost of people.
      Harbor and mattala were also such gigantic losses to show off how powerful Mahinda Rajaakshe can be ?

      Today, the bugger is defeated as a fierce dog is tamed to the level with tail hidden behind the rear legs:

      People have to bear teh burden today and in the future. Unborn children of this country are made debtors forever.

      • 3
        0

        CBK AND her administration

    • 8
      0

      Spring Koha

      Please note the exact accumulated losses at 31 Mar 2015 RS 123,265.57 Million.

      Ernest & Young the Auditors have lot of explaining to do so have the treasury, ministry and Central Bank.

      Please find these persons below and demand them to explain as to how they increased the losses over the years.

      Nishantha Wickremasinghe
      Chairman

      Kapila Chandrasena
      Chief Executive Officer

      Directors

      Nishantha Wickremasinghe

      Shameendra Rajapaksa

      Sanath Ukwatte

      Manilal Fernando

      Susantha Ratnayake

      Nihal Jayamanne PC

      Lakshmi Sangakkara

      31st July 2014

      Sri Lanka Airlines Annual Report 2014/15 (Comparative figures are also available for 2013/14):

      http://www.srilankan.com/
      corporate/pdf/annual-report/
      SriLankan_Airlines_Annual_
      Report_2014-15_English.pdf

      Sri Lanka Airlines Annual Report 2013/14 (Comparative figures are also available for 2012/13)

      https://www.srilankan.com/
      corporate/pdf/annual-report/
      SriLankan_Airlines_Annual_
      Report_2013-14_English.pdf

      Sri Lanka Airlines Annual Report 2012/13 (Comparative figures are also available for 2011/12):

      http://www.srilankan.com/
      corporate/pdf/annual-report/SriLankan_
      Airlines_Annual_Report_2012_2013.PDF

      • 2
        0

        Native Vedda

        Thank You for your links that helped refresh my memory. The SriLankan accumulated loss it seems, like Mopsy, to be getting bigger everyday.

        It fascinates me to see that every report is prepared on the basis of the business being a ‘gone concern’. Call me on old cynical bugger, NV, but my illustrious accounting guru taught me that a ‘going concern’ was ‘a business that is operating and making a profit’. I’ve said it before, and I repeat, the company should have been registered as a charity a long time ago.

        But the best was yet to come. As I wistfully studied the list of illustrious(?) directors that graced the SriLankan boardroom, I spied the name Manilal Fernando. A red mist descended; “No” I cried,”Not Vernon Manilal Fernando, God’s gift to World, Asian and Sri Lankan Football”. Friend of Princes, Sheiks, and the now deposed King of FiFa himself. This is the humblest, best upholstered man ever to grace our Eden. The man who has been cruelly vilified by the Court of Arbitration for Sport (CAS) for the simply shortcoming of having a different definition of Ethics.

        A man who has graced the boards of Aitken Spence, Holcim, Stallion Holdings, and many others. Just check the following links.

        http://www.fifa.com/governance/news/y=2015/m=3/news=cas-confirms-lifetime-ban-on-vernon-manilal-fernando-2580561.html

        http://www.sunday-guardian.com/sports/tough-questions-for-sri-lankas-football-godfather

        So the question remains. How can such an unmissable target (yes, he is
        huge and cuddly) have been missed by all those charged with ‘due diligence’? Or, to put it another way, how does this man defy gravity?

        • 3
          0

          Spring Koha

          A big thanks to you.

          It looks like the entire business has been run by freeloaders.

          Where were the oversight committees within the company and outside (treasury, parliamentary, ….and the opposition, 225 guardians, super smart ass patriots, Rear Admiral Sarath Weerasekara, Dayan, Nalin de Silva, Mahanayakas, … )?

  • 11
    0

    Eran Wickramaratne

    RE:The Sad State Of SriLankan Airlines: From Rs. 4.4 Billion Profit To Rs. 107 Billion Loss In 7 Years

    “The sad and shocking state of the country’s national carrier, SriLankan airlines was revealed recently by Deputy Minister Eran Wickramaratne, who disclosed that the airline which recorded a profit of Rs. 4.4 billion in 2008, took an appalling nosedive having recorded a whopping loss amounting to Rs. 107 billion, since then.”

    “Wickramaratne, the Deputy Minister of Public Enterprise Development speaking in parliament underscored that the decision by the former administration led by Mahinda Rajapaksa to cancel the deal with Emirates, just because they refused to permit a large entourage of Rajapaksa onboard was a ‘huge mistake.’”

    Was that the ONLY mistake? What about the others.

    EXPOSE, EXPOSE AND EXPOSE!

    2008 Profit Rs. 4.4 Billion

    Loss from 2009-2015= 8 years = Rs. 13.4 Billion/year =Approx US $ 100 Million/year.

    Ask the question from Mahinda Rajapaksa and his Brother in Law? That is the job of the current administration.

    What are they doing about it?

    Find another carrier to merge and and over management to them.Go back to Emirate, and beg them. If they do not answer the prayers, go to the other carriers. The average IQ of Sri Lanka is 79 and it is hard to find good talent who can think and are competent.

    To provide 6,000 jobs, it costs an average of US $ 100,000,000/6,000 approximately US $ 17,000 per year or Rs. 2.4 million or 24 lakhs /year.

  • 13
    2

    So, a year later the Honorable Minister is stating the obvious that we have known for years! Dear Minister Wickramaratne, can you please take this incredible financial black hole out back and put a bullet in its head? Keep the catering and training which are profitable, and the rest of the guys can easily find jobs overseas (and bring in valuable FE to SL) with airlines who are clamoring for trained staff since global air travel will double between 2015 and 2030. The war is over and there are enough airlines servicing Colombo, so just get a small business jet on a wet lease for the various Lokkas to go on their international jaunts, and ease us from this insane debt which continues to pile up. Are you scared that Sri Lankan Airlines employees will take to the street and protest? Don’t worry, we will gladly organize enough outraged taxpayers to come and chase their sorry, unprofitable derrieres off the streets!

  • 8
    0

    What is the solution? Everyone voted this government due to what was happening. Non of you are doing something which is tangible. Just pointing fingers. Thats not going to fix anything is it?

  • 9
    0

    Dear Minister Eran, Just talking is is useless. Do something about it at least now. We know it is not easy. If you cannot, liquidise the assets and sell it for new beginning. We dont have run a burden or liability. People do not need to suffer any more for nothing. When they sacked Peter hill and Emirates in 2008, in this same column we told them not to do it. because we all knew what is going to happened. MR and his corrupted gang now talks like saints. MR is the most inefficient ruler( Only knows how to kill) I have ever seen. He destroyed everything. he won the war by destroying the countries good name and image. He and baggage boy with Brother -in-Law destroy the main life line “Sri Lankan”. But there is no punishment or justice for people, tax payers in our legal system! There is no accountability? If this happened in west or some where else , there is no excuse, they have to repay or life sentence in prison. But nothing happened to that old retired planter and thief NIshantha Wickramasinghe! Peter Hill and Emirates has done there duty with their utmost patience. It was a revenge. Look at the figures in last 10 years. You can see. But to whom? For the innocent tax payers of Sri Lanka. Not to MR and his corrupted gang. you can Send MR to jail for this only.

  • 11
    0

    What other prime minister president of a civilized country would have tried to get ordinary fare paying passengers off an aircraft to allow uneducated filth to take their seats?
    Helping hambantota 2?

    • 6
      1

      Janaka, Is that why I was transferred from a Sri Lankan Airlines Flight, to a Mihin Lanka Flight in Singapore?

      It was supposed to be a ‘Code Share’ Agreement!

      • 7
        0

        Hamlet nangi,

        not only you happened to face it in that way – now we raise the issue knowing all these, Mr Madamulana used Srilanken to his Rome tour, and other trips to the US … loading all kith and kin as Zimbawian Mugabe did ? Why ? Was the man away from his healthy conscience already to that time ? He should be not normal – knowing the facts to waste further millions abusing the airlines for his foreign trips that way .. right ?

        • 1
          0

          THOSE WERE THE DAYS SRILANKEN WAS THEIR AIR TAXI.. PVT JET…

          remember the scence the bugger Gota was about to bring a puppy dog from Zurich… and the saga which costed jANZA her life ? No investigatiions were or the like were heard about that. Today we hear each and every case is being taken to investigation even if sometimes few hours late.. …

          had we had this culture under Meeharaka Pulligona Rajapakshe ? All the punnakku eating Ministers stayed mum as if they were fed with CLAY for the lst 5 years.
          Not only Rajapakshe alone, but also all the men worked as Ministers should be accoutable for all the messe making up over thousands of billions losses… in the country tday.

          iT IS FAIR the current rulers to take more loans .. they have confirmed to have taken 25% more loans to gap up all arrears left by Meehararaka sometimes without any records. for some transactions.

          This man Meeharaka should be taken to custody without any further delay. Allow him to roam further… farting around should not be done by authorities today.

  • 5
    17

    Is it true that Ravi K wants to dissolve the airline by declaring bankruptcy so that his corrupt cronies will start a new airline? You are very very very rich making money at NDB and funding the UNP campaigns in the past. Can you use NDB money to save the airline? Is it true your ultimate aim is seeking converts to a cult?

  • 6
    0

    One thing can do is bring age 55 retirement system. It might eliminate half of unnecessary positions in the airline. Under the management of current HHR Pradeepa company has dragged to the hell. He has created more than 100 unnecessary positions in last few years and those points gets 6 digit salary and the funniest thing is top management planning to reduce graded staff as a solution which is create more issues. Company make loses bdue to poor top management decisions,political appointments and unnecessary upgradings

  • 8
    1

    The Liberator MaRa has thrown the gauntlet! If you cant run the Govt,give it to me he says.
    Well then,as a start why not hand over just Airlanka so that he can turn it around and liberate the Rs.107 Billion loss?
    Conditions apply!

    • 3
      1

      Pygmalion;

      What a good idea!

      Hand Over Sri Lankan Airways to MR as a Test.

      If He can Turn it around and Make a Profit, then we can Hand Over the Country to Him!

      He might Invest all that Stolen Money, and bring it All back to the Country.

  • 5
    1

    “In 2008, the staff stood at 5113, but by 2015, this was increased to 6987” I bet the whole of the 30% comprised of Rajapakse relatives and Rajapakse bootlickers.

    “the government’s decision to purchase A330 and A350 airbuses in an irresponsible manner” How much of the purchase price was the kickbacks and commissions to the Rajapakses.

    The Rajapakses are wholly responsible for the demise of SriLankan Airlines. On top of all their woes, Mahinda Rajapakse is also not paying them what he owes for his own private travels.

  • 9
    0

    CT: You have missed one important paragraph of the Deputy Minister’s statement. Here below it is:

    “Sr Lankan Management had then decided to buy A 330 and A 350 aircraft in a reckless manner. The final Board decision to buy the aircraft had been made at the residence of the Speaker (who was President Rajapakse’s brother) in the absence of three directors. The Chairman of Sri Lankan was President Rajapakse’s brother-in-law. He continues: ” This is not connected to the Speaker. I am not saying the Speaker was connected to this matter, but the meeting should not have been held there. There is a suspicion why the Board Meeting was held at a place like this. Who else was there. According to documents 780 million dollars in Government support was needed in the three years after acquisition. An 80 million dollar deposit had been paid. Aviation experts have told us that the lease contract terms are 25 percent more expensive than normal and it needs to be looked at. The present value of the lease liability over the next 12 years is 1.5 billion US dollars. This is financial crime. We have to investigate this”.

    Mr. Deputy Minister: You did not want to involve the Speaker for that “Final Board Meeting” held at his residence. WHY? You would probably by now in possession of the “Minutes” of that Board Meeting and the attendance would have been duly recorded by the Secretary to the Board or the Company Secretary. Were the Chairman (the brother-in-law)of his brother and most importantly the Speaker’s son who was a “Director” not present? Why the Speaker allowed his “Official Residence” to be used for an “Unofficial Purpose” (not related to his official functions)? Don’t you SEE THROUGH the connections? Why do you say in your statement, “This is not connected to the Speaker”. I believe, it must be to “indirectly” confirm my assertion that it was “Unofficial” business. It is connected, because of the attendance of his own son, a Director and the Chairman the brother-in-law of the President who is his own brother. It would also be very interesting for us to know who else were present at the “Board Meeting”. Was Mr. Thiru Nadesan, another relation of Rajapakse family by marriage( the husband of Ms Nurupama Rajapakse) the Airbus Dealer Representative in Sri Lanka present? Perhaps you would remember this was the “MAN” who accompanied your Prime Minister( then Leader of the Opposition) to the Temple Trees in the early hours of January 9th 2015 to meet the President Rajapakse. Please connect the “DOTS” before you go into this “Financial Crime of Airbus Deal”.

    Anyway you very correctly said: “This is a financial crime. We have to investigate this”. Please do it. I believe this has been done already by the Waliammuna Committee and that report is lying collecting dust among other papers with your own Prime Minister. Please also be reminded the PEOPLE have spent nearly 3 million rupees to get that investigation and compile a report. Do you still want another “investigation” to probe into this “Financial Crime” of aircraft deal you now speak of?. Before anything else, please get that Waliammuna Report tabled in the Parliament.

    To the “Joint Opposition”: The ex President Mr. Mahinda Rajapakse now in you camp must be “cleared” of this Sri Lankan Airline matters without delay and that must be done in Parliament and NOT in a temple or in an office at Battaramulla. We don’t want statements. Please ask for a IMMEDIATE DEBATE on this statement made by the Deputy Minister on the floor of the House and remember to get the MP for Kurunegala, Mr. Mahinda Rajapakse to be PRESENT in PERSON and challenge and refute the facts.

    • 1
      0

      Thiru Nadesan is a shady character who appears to be playing a double game. I personally witnessed Ranil in the company of Thiru Nadesan at the Colombo Hilton the day after he lost the presidential election to Mahinda way back. To say Chamal had nothing to do with the board meeting held at his official residence is also suspicious.

  • 5
    2

    Reading through all the comments, now I get the picture as to why this present regime is over staffing Srilankan Catering unit which is a profitable organizations.

    We voted you for a good change, but now the right thinking people are regretting it fast.

  • 3
    2

    Dear Minister, please do not beat about the bush on this matter. Your
    govt.had been in power for more than one year and there had been ample
    time and opportunities to correct the situation, instead of blaming the former regime for the colossus losses incurred by Sri Lankan airlines. Even during the election time, people knew that the former regime emptied the treasury and filled their pockets and that’s why they were voted out. There is no need to cry now as people expected your Govt.to put the culprits behind bars within one month of accepting
    power to run the Govt.of good governance and carried on with the devel
    -opment projects but you did not do the way people wanted and the very same people move freely due to lethargic attitude shown by President/PM
    towards the people,who ruined the country’s finances and the current independent judiciary is not to be blamed.It is due to fear of
    reprisals that is causing the delay in bringing the cases to the courts

    It is true it takes time to indict a person in a court of law but what prevented the President, with the powers vested in him , asking the judiciary to expedite the cases on a priority basis as money looted belongs to the people, which is a national issue and they lost interest
    now and put it down to govt. lying, which will anger the people and will have a serious effect in the next election.
    It was pride that prevented the Govt.to close or down size the airline or hand it over to another senior airline to run it for us as running an airline needs foreign expertise,as we know what local experts did
    with the making of Mattala airport. Had they even consulted past, Sri Lankan pilots like Capt. Elmo Jayawardena, with vast international experience, flying through many international airports,and working for a grade one international airline, Mattala airport will be operating as an international airport today.
    Govt. still continues to bear the losses in USD., continuing with the operation. The current CEO came from Emirates airlines and how come he could not convince Emirates to forget the past and take over the administration.? He probably has no access to higher management but could have got CBK to talk to them if the Govt. is seriously interested
    in operating a profitable national carrier. There are many other airlines who would like to help Sri Lankan airlines but pride prevents such tie ups.

    Mr. Eran Wick – You should have got the minister to write this non-
    sense as people know that you, as an eminent modern economist, would have preferred a different approach towards this problem but unfortu-
    nately young economists like you and Harsha are side lined with junior
    positions so that you don’t act smart.

    • 2
      2

      lANKA wATCH;

      “Your govt.had been in power for more than one year and there had been ample time and opportunities to correct the situation, instead of blaming the former regime for the colossus losses incurred by Sri Lankan airlines”

      how you think current regime could solve it …. are we oil or gold rich nations to find those huge sums making up 120 Billions within a year ? Please elaborate .. how could an another hungry nation of our kind could find the sum and see it further ? If you are honest to you, you may know that what you ve been uttering is total BS. Even the US would not have found that sums within a year… that is what I feel.

      • 1
        1

        Samuel – Sorry for the late response. 120 Billion rupees in USD
        is peanuts (working at Rs.140/- a dollar) for some rich airlines like Emirates, Etihad, Singapore airlines and some airlines in the US like USAIR are worth trillion dollars with well over 1000 aircraft in their fleet. This may be magic for you but this is
        the truth.
        If the current Govt. was keen on re structuring Sri Lankan airlines, they should have entered into an agreement from day one with one of the rich and experienced airline as they and the whole world knew all along that Sri Lankan was guzzling US dollars
        and running into heavy losses in USD. Govt/SriLankan Should have reached an agreement for the partner airline to settle foreign debts and SL to settle local debts like aviation fuel.catering bills etc. We had an agreement with Emirates, which was paying dividends, as you may know. We also had a similar agreement with
        Singapore airlines, initially which tie up brought in profits as
        well.

        You may remember Govt. was in a mighty hurry to get a study done on Sri Lankan because it was the talk of the town and paid Rs.3 million to lawyer Vedamulla to investigate in the early days of this Govt. and the report put the blame on mismanagement for the airline failure and this report is collecting dust in the Chairman’s office and no one is working on it.

        If above still looks BS to you, get to google and learn how much
        the above airlines are worth. Do not cast unnecessary remarks,if you do not know the subject. Running an airline is not like running a bus company, though both transport passengers.

  • 1
    0

    I strongly agree with Shan. Hhr has ruined the airline with so many unnecessary appointments and decisions based on favourism and pleasure benefits! Yes it’s true so many six figure appointments are created as he wish and what we can’t understand is why the directors and the chairman doesn’t look into his dance. From hr manager analytics (hhrs kakuli with no hr knowledge nor analytics), green manager ( only ol pass, now doing a mba from a kadaya), and the list goes on. Seriously don’t this company has a way of promoting people. This hhr has to step down because he is not favour able for the company at all. He is also recruiting management trainees when the staff strength is already exceeding 7000! Is he crazy? Has he gone blind from dahanayaka baby love? Or does he have to recruit some friends daughters ( one intern now serves as a executive in recruitment by just being a
    Intern for 6 months- reality is her father and kakula are good buddies and neighbors!) what a wonderful world../

    God bless you SriLankan airlines!

    • 1
      0

      Minister must look into this development without delay. Look like they still hiring people for Sri Lankan Airlines at present state.

  • 4
    2

    When Mahinda Rajapakse was doing all these things what was doing the opposition

    just fighting for the loaf of bread, asking for luxury vehicles for them to travel and more benefits and perks ?

  • 3
    0

    Preaching has little value after 14 months. Dear Eran, preaching was your father’s profession. As a politician you will have to put forward strategic and tactical solutions to problems. Else people will get tired of your preaching.

    What are the turnaround plans? There are quick yielding solutions (low hanging fruits). To start with upgrade the website. On-line booking is a problem. With lower fuel prices and One World membership there are opportunities.

  • 3
    0

    THE GOVERNMENT SHOULD BRING THE OLD CHAIRMAN AND GET MR TO WHIP HIS ASS ON THE RUNWAY OF KATUNYAKE FOR THIS DAMAGE DONE. AND GET HIM TO WHIP MR FOR BEING A GULLIBLE IN GIVING THE CHAIR TO SOMEONE WHO DOESNT EVEN HAVE OL. EMIRATES SHUDNT HAVE NEVER BEEN CHASED OFF. OUR BUGGERS ONLY WANT TO BE LOCALISED AND LOSE MONEY. SRI LANKA IS SADLY A BIG GROUND OF CIRCUS WITH A BUNCH OF CLOWNS.

  • 3
    1

    UK foreign minister issued a statement on Sri Lanka just yesterday.

    He is worried about Sri Lanka “money situation”. He says the Minister from Sri Lanka is desperately asking for business from UK.

    The British never conquered the island in a full frontal battle. They were losing the battle. In the end they bribed Ehelepola to undermine the king. The kingdom lost because of back boneless types like Ehelepola.

    The British then built a school system to cultivate the Ehelepola types in Sri Lanka. The dynamic that broke Sri Lanka’s backbone is still flourishing.

    How can Sri Lanka brow back its back bone?

    Get the systems working first. The Finance Minister cannot determine how much money the govt owes because the systems that keep track of thing are not there.

    It was only last week someone in the Treasury decided to create a database of Tax payers! This is 2016 for crying out loud. Issue tenders and build an integrated IT system encompassing the entire govt network.

    Look for solutions within. Internal trade trade accounts for largest chunk of trade. External trade is small.

    This is not going back to Socialist potato and onion farming. Keep market open and encourage trade activities within Sri Lanka first. Get people to buy and sell things to each other.

    In “Ease of doing business Index” Sri Lanka is in the 170th position behind countries like Mongolia, Rwanda and Uzbetistan!

    http://www.doingbusiness.org/~/media/GIAWB/Doing%20Business/Documents/Annual-Reports/English/DB16-Full-Report.pdf

    In order to increase external trade improve the things you need to do business in Sri Lanka. Look at the items they looked for here and find solutions to those.

    Get your God damn house in order before pleading for business from others please! When you do things right they will come.. You wont need to beg for help.

  • 2
    0

    The New Royal has kept only one promise so far. That is the one on Jan 8th of election night, the fake coup day of UNP, the one Ranil agave to Old King that he will be saved. This was the election promise too. “No leader, No commander and no soldier will be prosecuted”. Other than that all are given up.

    The have started a new culture of blaming the Old Regime to hide their frauds. Central Bank was robbed by Mahendran. JVP and TNA, the official oppositions have accused that the ministry under Swamynathan have looted a substantial amount of money with an Indian owner company to sell inflated price house to IDPs in loan. They will not investigate anything because then they will ended up investigating them too. When Yoshita was arrested Old King reminded the case of Dulanjalee. That is why Yoshita was allowed to go on bail. Otherwise for crime accused on him that is Thajudeen was tortured and killed followed by evidences tampering, there would not have been any bail.

    There is no need to waste a million coconuts to invoke curse on these people. If you send somebody with a 5.5 million votes to Temple Tree House, the curse reside there will posses them without any further effort. Until the cursed Temple Tree House is there and ruling the Wildlife Sanctuary, the magic of Lankawe becoming the “Wonder of Asia” can not be stopped.

  • 3
    1

    This is due to nepotism, and putting an unqualified and greedy member of the Rajapaksa family, to head our national carrier. The time frame shows the airline going downhill under the criminal regime, who has used our country as a means to gain wealth, and at the expense of the Sri Lankan people. It seems Shiranthi’s family made hay while their sister’s husband was in power too. Two dishonest families, behaving like avaricious dictators, using Sri Lankan airlines planes as if they owned them, taking plane loads of their golayas on jaunts to enjoy themselves, ALL at the expense of the people. THIS IS WHY WE SHOULD NOT TOLERATE NEPOTISM.
    Whether it is the last regime of the present one, we should not tolerate this kind of behavior, because we vote for leaders who will put the country and people first, not their uneducated, unqualified, family members.
    We have plenty of qualified Sri Lankans who can fill in these posts, and we have plenty of career diplomats who can represent us in other nations – not somebody’s uncle, or brother, who act like fish out of water, and looks only to benefit themselves. At this point it seems we can never recover from such a big loss.

    • 1
      1

      Manel

      “who has used our country as a means to gain wealth, and at the expense of the Sri Lankan people.”

      How did they use our country to gain not only wealth but also absolute power?

      I suppose they portrayed themselves as the super patriots, by beating up the Demelas, and the people voted for them, and remained silent while the super patriots were pillaging the country. One couldn’t question the clan because they have defeated the evil LTTE.

      It was the licence given to them to pilfer the country run amok.

      Yet there is a substantial section of the people still supports the crooks.

      Something is wrong.

      • 1
        0

        “Yet there is a substantial section of the people still supports the crooks.”

        Yes Native, Birds of a Feather Will Always Flock Together, to catch the Earliest, Juciest Worm

  • 4
    2

    Sri Lanka is becoming a cursed country. We have impotent leaders and montessori parliamentarians. Give the country to the tamil leaders to manage, they will show how to make profits.

    • 3
      0

      Sadly most of the Tamil leaders were killed by the Tamil Leader. The reamining Tamil leaders are giving the Sinhala leaders lessons in bribery and corruption, power broking and hypocrisy.

  • 5
    1

    Its somewhat hilarious to note Mr.Wicramaratne now lauding Emirates Deal and Chandrika Bandaranaike’s involvement in the tie up.Is he not aware of what the UNP at the time said about the deal(and CBK) and more importantly how under the direction of RW(when he was the PM under CBK presidency)sent a high powered delegation to Dubai to renegotiate the deal and came empty handed !

    I suppose from a political perspective is should be considered OK to paint Villain as Hero when suited

  • 3
    0

    The revelations of the deputy minister are factual.
    But, he does not say what he is doing about them.
    Why is he not proposing any solution to this massive burden on the citizens when many eat only one meal a day.
    He was elected to solve problems well known, not to write about them.

  • 3
    0

    I watched a TV debate named “Balaya” where one of the participants was the Deputy Minister Mr. Erin Wickramaratne. This subject “Sri Lankan Airline came for discussion. He said same thing as related in his statement; but another participant viz. MP Handunetti of JVP asked a very important question. He said already we know what has gone very WRONG; but “What is the “PROPOSAL” or the “SOLUTION” of the Government to face this “Debt Crisis” in Sri Lankan Airline. He,(Mr.Hadunetti) also said these new Air Buses on “ORDER” are now getting ready; meaning, painting with logo and installing seats etc; to be delivered and wanted to tell specifically what do we propose to do. Are we going to accept all on order OR accept part of it OR not to accept anything. But, the Deputy Minister did not answer the question, but continued with the same as stated in Parliament. That indicates the Government has not made ANY DECISION on the matter. Please note first delivery is coming in May, 2016. Are we READY for it and have we found necessary FUNDS to be paid on delivery? Well, “WE” do not know.

    One noteworthy opinion Mr. Wickramaratne made was the setting up of “Special Court” to hold cases in regard to those completed “MEGA FRAUDS” and “CORRUPTIONS”. Very good idea. Why not go ahead and do it? Why NOT the Minister of Justice not moving in the matter? Why not bring in the necessary legislation and set up those “Special Courts” and make a SPEEDY FINISH with these matters pending with FCID,CID,BRIBERY AND CORRUPTION COMMISSION and the PRESIDENTIAL COMMISSION? WHY? WHY?..The Government KNOW what to do; but DO NOT DO IT. WHY?

    • 2
      0

      Douglas

      “Mr. Wickramaratne made was the setting up of “Special Court” to hold cases in regard to those completed “MEGA FRAUDS” and “CORRUPTIONS”. Very good idea.”

      Did he allude to any backroom deals with crooks from the past regime which have been the main stumbling block to any meaningful, serious truth finding investigation?

      The mismanagement or the theft in the government institutions is not limited to the politicians nor to cronies. Seriously integrity of most of the officials has been compromised.

    • 2
      0

      Douglas – You are pouring water on ducks back. Who will bell the cat is the question, meaning which minister will come forward as the hang man to hang those found guilty of political murders, corruption and nepotism. Please do not waste your valuable time as nothing will happen
      to those found guilty as govt. is worried about reprisals. Don’t be surprised if FCID is closed and all cases dismissed in a short period of time.

  • 1
    1

    After Sri Lankan Airlines, Peter Hill set up Oman Air from scratch. Now it’s three times the size of Sri Lankan Airlines, and is a big competitor. Now he is in Fiji, and building up a new Airlines there as well. Our Sri Lankans are very smart and very clever at destroying some thing good. When we packed off the British Tea planters, they went and started tea plantation in East African countries – Kenya, Uganda, Tanzania, Malawi etc. Before that these countries didn’t have a single plantations but now they became a big competitor and threat to our entire tea industry, Kenya has beaten us in production and export. Malaysia still has all the foreign plantation companies, even Sri Lanka companies own thousands of acres there. All these are due to the greedy and power hungry past and present politicians and officials. The Public must round them up all in Galle Face Green, and stone them for this high crime on the people and the country.

  • 5
    0

    Factual corrections-Peter Hill did not build Oman Air from scratch. He took ever that and then left it worse off. Oman Air is financially as bad. Neither is he in Fiji. He is in Ghana. Neither did he or Emirates leave a profitable airline, the 4 billion profit in 2008 was due to one off profit amounting to 6 billion when they sold and leased back three A340 aircraft. In fact in their last year Emirates lost nearly Rs 2 billion for the airline. All these facts are in public domain.

    • 4
      0

      Well,notwithstanding all the hype about him,Peter Hill was no visionary or even a man with exceptional Managerial capabilities.(except to those who benefited through their association)While he was only a figure head it was only Tim Clark who had the control over EK/UL deal.

  • 3
    0

    Or In Angola ( Perter Hill)

  • 0
    0

    To turn around a massive debt/losses in a monumental task for the government. Since this is a government owned company losses has to bear by the tax payers. The whole organization has to be overhauled, all the excess staff should be given redundancies, bonuses have to be stopped until it become profitable.

    I also heard Kehiliya was mentioning the new CEO is paid monthly Rs 30 lakhs. Accori to international standards this is not a huge salary to be paid to the right person.

    Once, it is earning revenue must be privatises and listed in the stock exchange. Better to have dual listings SL and Singapore to prevent manupilation by unscrupulous politicians.

  • 1
    0

    What is this Jay ? CEO is paid 4.4 and the new CCO is paid 30 plus also this is the heaviest top this company have had in the recent times.Furthermore some of the contract positions made by MR regime, this board made them permanent.Some MR loyalists were made GMs with no experience.Shamelessly now talking of USD 1b loss. The workers did not participate or demanded any of these recruiting.The party buying this wobbly stack will first remove from the top.

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