Oct 08, 2017

Ravi K creates precedence to assist SriLankan Airlines through the treasury

SriLankan Airlines has submitted a restructuring plan to the government following the president’s directive to its board of directors to reduce losses and show successful results before September this year.

But the airline continues its heavy operational spending with state financial infusions following the precedence created by former Finance Minister Ravi Karunanayake through his directive to   the Treasury to release funds to SriLankan Airlines for six months in 2016. It has become an obligation to the treasury even at present.

This has made the treasury to bear an unnecessary financial burden as the national carrier’s management failed to curtail its operational expenses spending millions of rupees as salaries to top management personnel who have become lavish spenders of public money.

The Treasury has to provide Rs.13.2 billion through the Bank of Ceylon (BOC) and the People’s Bank (PB) as a result of the precedence created by former minister Karunanayake event at present, sources said.

Capt. Suren Ratwatte, the recently-appointed chief executive officer of Sri Lanka’s national carrier SriLankan Airlines, which is incurring heavy losses and nearing bankruptcy, has got himself a pay hike and his salary is now Rs. four million, say sources at the airline.

A board paper has been presented to the board of directors of the SriLankan Airlines to pay a staggering 10 million bonus to its Chief Executive Officer Suren Ratwatte.

The paper has been turned down by the board of directors considering the current financial status of the state-run company.

The paper has been presented to the board after the airline suffered a massive financial loss of Rs. 28 billion during the last financial year.

SriLankan Airlines has long been criticized for mismanagement since splitting from the joint venture. From appointing “unqualified political stooges” to positions of power.