Monday, 27 June 2016

Sri Lanka's Mihin Lanka losses total Rs17bn

ECONOMYNEXT - Sri Lanka's state-run carrier Mihin Lanka has lost 17 billion rupees over the past seven year, and has received a 15 billion rupee 'letter of comfort in 2015, a Finance Ministry report said.

Mihin Lanka was founded by ex-President Mahinda Rajapaksa and a close ally Sajin Vass Gunewardene, with tax-payer money and has made losses from day one.

The Finance Ministry report said it had been given a 15 billion rupee 'letter of comfort' in 2015 to continue operations.

President Rajapaksa also re-nationalised SriLankan Airlines driving out Emirates as managing shareholder which then generated large losses.

The finance ministry said in 2015/16 Mihin was expected to reduce losses to 938 million rupees, from 1.48 billion rupees a year earlier.

Total losses made so far was 17 billion rupees. Sri Lanka's state-owned enterprises are a major burden on society making large loses and providing an avenue for the elected ruling class to appoint highly paid director and stuff them with their supporters.

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