Sri Lanka state airline losses financed by petroleum retailer: report

The Hapag-Lloyd delegation including, Capt. Prateek Gandhi – Director Operations, Hapag-Lloyd, Regional Office, Dubai,Mr. Faheem Mir – Manager - Operations, Hapag-Lloyd, Regional Office, Dubai,Mr. Lalith Witanachchi – Vice President, Hapag-Lloyd Lanka (Pvt) Ltd, Mr. Mindaka Dassanayake – General Manager, Hapag-Lloyd Lanka (Pvt) Ltd.,Mr. Rohan Ranasinghe – Terminal Operations Manager, Hapag-Lloyd AG and Mr. Iqram Cuttilan – Managing Director, Aitken Spence Shipping Ltd poses for a pic with SLPA’s Chairman -Admiral Sirimewan Ranasinghe and the Managing Director - Eng. Ganaka Hemachandra. SLPA's Vice Chairman - Eng. Herath M.P. Jayawardhana, Director (Operations) - Mrs. G. Zavia Miskin and Director (Marketing and BD) - Mr. H J K U Kumara are also present.

Feb 27, 2012 (LBO) - Sri Lanka's loss making state-run airlines have been mainly financed by Ceylon Petroleum Corporation, to which they owe 18 billion rupees (150 million dollars) in unpaid dues for fuel, a media report said.

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Losses for the current year so far at Mihin Air, a state-budget carrier are not known but opposition legislator Harsha de Silva has called for its closure, saying a parliamentary committee has found that it has lost or was in debt for nearly 14 billion rupees.

SriLankan Airlines had made large losses since a management contract with Dubai's Emirates was terminated, while Mihin Air has lost money from day one.

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Sri Lanka raised petroleum and power prices in February after excessive credit growth put pressure on a rupee peg.

In addition to a steady growth in private sector credit, a sudden spike in state enterprise credit was seen from May 2011.

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The rupee has fallen from 110 to around 120 rupees in the past year.

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Sri Lanka's Ceylon Today newspaper quoted power minister Champika Ranawaka as saying that state-run SriLankan Airlines and Mihin Air owe the petroleum firm 18 billion rupees.

Minister Ranawaka was quoted as saying that it was unfair to blame only the Ceylon Electrici