A Clarification from SriLankan Airlines on the Misleading News about Million-Dollar Losses Made Last Year 

13 May 2023; Colombo – SriLankan Airlines would like to clarify that the figure quoted in certain misleading news headlines refers to the financial position of the company as at 31 March 2022. The highlighted loss figure includes a foreign exchange loss of LKR142.6 billion resulting from the revaluation of net foreign currency liabilities due to the sudden depreciation of the Sri Lankan rupee exchange rate in March 2022. The group, in fact, made an operating profit according to the audited financial statement and before the occurrence of exchange losses, amounting to LKR1.7 billion in the year. This is a significant achievement considering the issues faced by airlines worldwide during that period owing to the Pandemic.

SriLankan Airlines, moreover, presented its unaudited dollar financial statements for the latest financial year that ended in March 2023 at the recent COPE meeting in the Parliament. During the recently completed fiscal year, the airline generated a passenger and cargo revenue of USD994 million and an operating profit of USD53 million.  The operating profit at group level was USD104 million. The group, however, incurred financing costs of USD101 million, resulting in a profit of USD3 million. These figures may vary slightly during the finalization of year-end accounts, but essentially the airline has broken even for the first time in over a decade.

As the Chairman of SriLankan Airlines stated during the recent COPE meeting, the airline has received no funding in the last two years, and continues to operate using its own cashflows.

The airline maintains operating margins in line with the best industry standards. We are optimistic that these will be stronger in the year ahead as the country moves forward from the challenges of 2022. As discussed at the COPE meeting, the biggest challenge yet is the country’s situation and extremely high financing costs.