ECONOMYNEXT – State-run SriLankan Airlines lost 8.4 billion rupees in the 2024/25 financial year, against a profit of 3.7 billion rupees a year ago, with lower revenues and some costs coming down, official data show.
The 8.4 billion loss came despite a 4.09 billion rupee exchange gain. However, in 2023/24 year the 3.8 billion rupee profit came with a 26.6 billion rupee exchange gain, indicating that the loss before the exchange gain was greater in the previous year.
SriLankan has large dollar debts, and its value fluctuates wildly along with currency movements.
A large part of its losses in the past five years came as macroeconomists depreciated the currency, after cutting rates with printed money.
In 2022/23 107 billion rupees out of a loss of 165.8 billion rupees came from an exchange loss, which is a consequence of macroeconomic policy and rate cuts.
The 26 billion rupee exchange gain in the following year, came as the central bank restored monetary stability, removed a surrender rule and allowed the rupee to appreciate.
State enterprise, and also government budgets go haywire with the national currency being weakened by macroeconomic policy.
In the year to March 2025, revenues fell to 299.1 billion rupees from 335.8 billion rupees with passenger revenues falling but cargo revenues being flat.
Fuel costs fell to 91 billion rupees from 115.1 billion rupees.
Employee costs were also flat at 30.9 billion rupees against 29.8 billion rupees.
Airport and aeronautical costs were down at 45 billion rupees from 51 billion rupees. It is not clear whether this was due to currency appreciation.
Maintenance and overhaul costs were also down to 45 billion rupees from 51.9 billion rupees.
With the loss of 8.4 billion rupees, accumulated losses went up to 615 billion rupees, compared to equity of 213.2 billion rupees, indicating a serious loss of capital.
Taxpayers injected 9.8 billion rupees in SriLankan. Another 20 billion rupees in taxpayer funds were allocated in the current government budget to keep it afloat. (Colombo/June23/2025)
