ECONOMYNEXT –State-run SriLankan Airlines had grounded three aircraft without funds for engine repairs, Aviation Minister Nimal Siripala de Silva said last week.
“Three aircraft are on the ground,” Minister de Silva told parliament. “For several months we have not had the money to fix the engines. But even if the engine is not serviceable and grounded we have to pay the lease rental.”
The nature of lease contracts was such that payments had to be made regardless of whether the planes were flying or not, he said.
The minister who said the airline now carried USD 1.2 billion of debt had no profit after paying interest and urged that the government should not run businesses.
SriLankan Airlines was part privatized under President Chandrika Kumaratunga and
run by managing shareholder Emirates, but was bought back by the state by the Mahinda Rajapaksa regime following a spat over the airline’s refusal to bounce paying passengers off a flight to accommodate members of his retinue on a visit abroad.Emirates had posted a profit for SriLankan under its management.