BIZ

6,000 jobs at risk if SriLankan isn’t immediately restructured – minister

Published

2 years ago

June 30, 2023

editor

Addressing a press briefing held at the Presidential Media Centre today (30), Ports and Civil Aviation Minister Nimal Siripala de Silva expressed concerns about the potential loss of jobs for approximately 6,000 employees at SriLankan Airlines if immediate restructuring measures are not implemented.

The minister emphasized that the government cannot sustain the financial losses incurred by SriLankan Airlines and it would be unfair to continue using taxpayer funds in this manner. To address the situation, the government has already initiated efforts to engage the support of international financial experts, with the aim of conducting the restructuring process in a transparent manner, as part of their commitment to building a stable country.

Addressing the media briefing, Minister Nimal Siripala de Silva said;

“SriLankan Airlines, established as our national carrier many years ago, holds a unique position. While it managed to generate a profit of Rs. 30 million during the period it was under the control of Emirates Airlines, it has struggled to achieve profitability otherwise.

The airline is primarily funded by the taxes of ordinary citizens, including those who have never experienced air travel. We take pride in having our own national airline, but we must question whether the cost associated with maintaining it is justified.

Presently, SriLankan Airlines carries a debt of US$ 1.2 billion. Various organizations, including local state banks, have had to cover outstanding payments for international bonds and leased planes. Additionally, we have accumulated unpaid fuel bills. Operating an airline under such immense debt is unsustainable.

Due to economic challenges, including foreign exchange difficulties, the government is unable to provide financial support for losses as it has done in the past. This approach is no longer equitable, which led to the decision to restructure SriLankan Airlines. The restructuring plan entails the government retaining a 51% share, with the remaining 49% to be offered to another investor.

The proposal for the restructuring process of SriLankan Airlines was submitted to the Cabinet six months ago. Although some profits are generated through ground operations and SriLankan Catering Company, they are insufficient to cover the airline’s losses.

Considering the need to sell shares separately and the memorandum presented to the Cabinet, a series of proposals have been forwarded to international financial experts through the Ministry of Finance. We are committed to transparently maximize the benefits of this process.

The completion of the SriLankan Airlines restructuring is anticipated within the next six months. It will then be transferred to the identified investor under conditions that safeguard the rights of employees. Through this initiative, we aspire to enhance the performance of SriLankan Airlines. Failure to undertake this task promptly puts the jobs of approximately 6000 employees at risk.

The airline industry worldwide experienced a severe setback due to the COVID-19 epidemic. Tourists ceased to visit countries, and many nations had to ground their planes. In fact, even Qatar Airways had to lay off 72 pilots. In contrast, our government ensured that our pilots received half their salaries, even when they were not actively flying. This gesture was driven by a humanitarian approach.

Following the COVID-19 epidemic, our country faced immense challenges, including a decline in tourist arrivals. However, under the leadership of President Ranil Wickremesinghe, the government successfully navigated these difficulties and revitalized tourism through the efforts of SriLankan Airlines. As a result, tourists gradually began returning to our country.”

In response to a journalist’s query regarding the domestic debt restructuring, the minister said:

“The Opposition has a history of disseminating misleading information. Before having access to accurate details, they have already made predictions today. Their claims about the imminent collapse of the banking system and the potential loss of benefits from the Employees Provident Fund are baseless. Such false advertisements have been widely circulated. However, financial experts assert that there will be no adverse impact on the public. The Domestic Debt Optimization is currently in parliamentary and we will obtain approval with a simple majority.”

(President’s Media Division)

BIZ

BOC & NSB record historic profits

Published

3 days ago

May 23, 2025

editor

In a milestone moment for Sri Lanka’s financial sector, the Bank of Ceylon (BOC) and the National Savings Bank (NSB) reported record-breaking profits for the year 2024, officially presenting their annual reports to President Anura Kumara Disanayake at the Presidential Secretariat today (22).

The achievements, marked by robust fiscal discipline, strategic vision and public accountability, signal a renewed trajectory of confidence in state-owned banking institutions.

The BOC announced a staggering pre-tax profit of Rs. 106 billion, the highest ever recorded not only by a bank but by any institution, public or private, in Sri Lanka’s history. BOC Chairman Kavinda de Zoysa emphasized the significance of this financial milestone, stating, “This is a historic record as the BOC recorded the highest profit before tax of Rs. 106 billion, the highest profit achieved by any institution, bank or company in Sri Lanka in its entire history.”

He credited the bank’s strategic focus on national development and SME support, adding, “BOC continues as the largest SME and development bank in the country with the best business rehabilitation unit which is futuristic and supports the entire nation.”

Meanwhile, the NSB posted a dramatic turnaround, reporting a pre-tax profit of Rs. 26.4 billion, a remarkable leap from Rs. 4.2 billion in 2023. Chairman Dr. Harsha Cabral attributed this growth to prudent fiscal governance and effective stakeholder collaboration.

“The National Savings Bank recorded the highest ever profit before tax of Rs. 26.4 billion for the year 2024. This is a momentous success and a major increase from the Rs. 4.2 billion in 2023,” he said. “The success of NSB is mainly due to the financial discipline and macroeconomic stability of the country. I dedicate this achievement to the entire NSB family, including our employees, board of directors, senior staff, customers and all stakeholders who support us directly or indirectly.”

Dr. Cabral highlighted that NSB is no longer a burden on the state. “We are a self-sustaining success story and not a burden on the Treasury anymore. With professional management and financial discipline, the NSB has achieved its targets and hopes to exceed them in 2025,” he noted. He also pointed to internal reforms and staff incentives that bolstered morale and productivity. In 2024, NSB’s workforce was streamlined from 4,600 to 4,200 while maintaining a 262-branch network. Employees were rewarded with a five-month bonus, and gold coins were reintroduced for long service recognition after a five-year gap.

Both chairmen underscored a rare but significant aspect of their governance: neither they nor their board members draw a salary for their service. “Our reward is the institution’s success and its contribution to national development,” Cabral remarked, a sentiment echoed by de Zoysa as a model of civic-minded leadership.

President Anura Kumara Disanayake commended the accomplishments of both institutions, stating, “These banks demonstrate how strategic leadership and ethical governance can transform public institutions into pillars of national strength. Their performance is a beacon of what’s possible in Sri Lanka’s economic future.”

With an eye on 2025, BOC is set to expand its digital infrastructure to enhance accessibility and customer service, while NSB plans to refine its operations further, guided by corporate governance best practices.

(President’s Media Division)

BIZ

CBSL further reduces Overnight Policy Rate (OPR)

Published

4 days ago

May 22, 2025

editor

The Monetary Policy Board of the Central Bank of Sri Lanka has decided to reduce the OPR by 25 bps to 7.75% at its meeting held yesterday (21), thereby easing monetary policy further.

The Board arrived at this decision after carefully considering the developments both domestically and globally. The Board is of the view that this measured easing of monetary policy stance will support steering inflation towards the target of 5%, amidst global uncertainties and current subdued inflationary pressures.

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BIZ

SriLankan attracts 12,000 applicants in cabin crew recruitment drive

Published

4 days ago

May 22, 2025

editor

SriLankan Airlines has received an overwhelming response to its latest cabin crew recruitment campaign, with nearly 12,000 applicants vying for positions as the airline expands to meet growing global demand.

The selection process enters its next phase from May 20–23 at the Bandaranaike Memorial International Conference Hall (BMICH), where shortlisted candidates will undergo a multi-stage evaluation. This includes document verification, image and presentation assessments, and aptitude interviews conducted by expert panels. Only those who clear all stages will advance to final interviews at the airline’s Katunayake headquarters.

Susan Jacob, Group Head of Human Resources, stated, “We seek individuals who embody Sri Lanka’s warmth and are committed to excellence in service. Our transparent process ensures we select the best talent.”

Ravi Samarasinghe, Senior Manager of Cabin Services, highlighted the broader impact: “This recruitment supports our strategic growth and Sri Lanka’s tourism revival. New crew members will enhance operational excellence and contribute to the economy.”

The drive underscores the airline’s post-pandemic recovery and ambition to strengthen its footprint in emerging markets. Successful candidates will join a team dedicated to elevating SriLankan Airlines’ global reputation for hospitality.

(Pic: dailymirror)