A comprehensive report on the restructuring of Sri Lankan Airlines has submitted to Prime Minister Ranil Wickremesinghe to reduce the losses and maintain the national carrier going until entering into a partnership with a foreign airline to resurrect it.
Prime Minister’s office all so conducted an internal inquiry in to Sri Lankan Airline’s Airbus A330-300 aircraft it wet-lease with Pakistan Airlines last year and a confidential report has already been submitted to the Prime Minister.
In June of this year, the Sri Lankan’s Directors and Chief Executive were summoned before Cabinet to answer for the lack of success in the Airline and grilled for not implementing the Weliamuna report which found incriminating evidence of corruption and malpractice by the previous regime.
In April 2015, the Weliamuna report said SriLankan Airlines was a paradise for sex predators, with the top management demanding sexual favours from staff, leading to a breakdown of discipline at all levels.
The ministry is implementing a resolution strategy for Sri Lankan Airlines, originally approved by Cabinet in 2015. The airline has already undertaken route and fleet optimization, reducing operational losses.
The next step is to secure a strategic partner and resolve the need for capital injection and debt consolidation, thereby effectively removing this company from the government’s accounts.
To monitor progress, we will report the company’s financial performance on a quarterly basis (see the Technical Memorandum of Understanding).
The ministry aims to put the airline on a commercial footing and resolve fiscal contributions, if any, to the airline’s liabilities. This milestone can be set as a structural benchmark for future program reviews.