SriLankan Airlines recorded a Rs. 12.9 billion net loss in Q1 FY25,
- 5opn1
- November 12, 2024
- Aviation news
- SriLankan Airlines
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SriLankan Airlines reported a Rs. 12.9 billion net loss in the first quarter of the 2024/25 financial year due to ongoing cash flow challenges driven by legacy operational issues and financial costs from past debt, as stated by the Finance Ministry.
The airline’s revenue for this period was Rs. 63.8 billion, a 12.7% decrease from the Rs. 73.1 billion earned in the same period of FY24 posting a modest profit before tax of Rs. 0.6 billion, significantly lower than the Rs. 8 billion from the previous year
The Group ultimately recorded a net loss after adjustments, a contrast to the Rs. 25.8 billion net profit seen in FY24.
To support SriLankan Airlines’ cash flow issues, the General Treasury has provided regular equity injections, loan guarantees, and a Rs. 5 billion equity contribution in early 2024., alongside assuming Treasury-guaranteed debt of $210 million and Rs. 31.4 billion.
Additionally, Chairperson Sarath Ganegoda recently indicated that, per President Anura Kumara Dissanayake’s directive, plans to privatize the airline have been shelved in favor of a restructuring initiative aimed at establishing long-term viability.
