Dec 24, 2014 (LBO): Sri Lanka’s State-run SriLankan Airlines and Mihin Lanka, a budget airline had become White Elephants, destroying the money of the common man, common opposition Presidential candidate Maithripala Sirisena said.
“Mihin Air is a massive national robbery which has been done openly,” Sirisena said at a business forum yesterday.“This was done for the needs of one or two people.”
“We will merge SriLankan and Mihin Lanka if we come into office and will investigate and punish those who are responsible for the corruption that took place in buying the aircraft and equipment.”
“Also it is necessary to appoint people with specialist knowledge to top positions to manage these airlines,” he said.
“Currently the airlines are not managed by the people, who has that kind of specialized knowledge.”
“As you all know, Mr. Rajapaksa’s family members are holding the positions. So, these enterprises have become large white elephants. It is essential to appoint capable and honest people to manage them.”
In the first half of 2013 Foreign Direct Investment into Board of Investment’s services sector was only 18 million US dollars, main Opposition leader Ranil Wickremesinghe said.
However, it had been reported as 410 million dollars in the first half 2014, he said.
“The addition being what we have paid for the purchase of aircraft for SriLankan and Mihin Air which is 330 million dollars,” Wickramasinghe said.
“Now we have to find a way of how we can pay this without putting the burden on people through direct and indirect taxes."
SriLankan Airlines and Mihin Lanka lost LKR 30.1 billion (230 million US dollars) in 2013, with losses over the last five years totalling 89.9 billion rupees, official data shows.SriLankan Airlines made a loss of LKR 28.6 billion and State-run budget airline Mihin Lanka made another loss of LKR 1.5 billion, up from a billion rupees a year earlier, the annual report of the Central Bank showed.
In 2013 revenues had risen 2.9 percent to LKR 109.5 billion but operating expenses had gone up 5.1 percent to LKR 138.1 billion rupees.
SriLankan last made profits in 2008 and has been raking up up losses since a management deal with Dubai-based Emirates ended.
“We will merge SriLankan and Mihin Lanka if we come into office and will investigate and punish those who are responsible for the corruption that took place in buying the aircraft and equipment.”
“Also it is necessary to appoint people with specialist knowledge to top positions to manage these airlines,” he said.
“Currently the airlines are not managed by the people, who has that kind of specialized knowledge.”
“As you all know, Mr. Rajapaksa’s family members are holding the positions. So, these enterprises have become large white elephants. It is essential to appoint capable and honest people to manage them.”
In the first half of 2013 Foreign Direct Investment into Board of Investment’s services sector was only 18 million US dollars, main Opposition leader Ranil Wickremesinghe said.
However, it had been reported as 410 million dollars in the first half 2014, he said.
“The addition being what we have paid for the purchase of aircraft for SriLankan and Mihin Air which is 330 million dollars,” Wickramasinghe said.
“Now we have to find a way of how we can pay this without putting the burden on people through direct and indirect taxes."
In 2013 revenues had risen 2.9 percent to LKR 109.5 billion but operating expenses had gone up 5.1 percent to LKR 138.1 billion rupees.
SriLankan last made profits in 2008 and has been raking up up losses since a management deal with Dubai-based Emirates ended.
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