Sri Lankan Airlines aiming ‘Not to Lean’ on Govt. | Daily News


 

Sri Lankan Airlines aiming ‘Not to Lean’ on Govt.

Sri Lankan Airlines Chairman Ashok Pathirage said that his company was aiming not to lean on the government for US dollar reserves. Pathirage was speaking to Echelon Decodes on 1 May.

Pathirage said the government has limited US dollar income and as such Sri Lankan Airlines was saving its US dollar revenue as much as possible to serve its foreign currency-denominated obligations.

Pathirage who is also the chairman of Softlogic Holdings said that his company’s leisure sector assets had foreign currency borrowings and were currently operational with zero revenue.

Director Hirdaramani Ranil Pathirana said that the garment sector also had considerable borrowings that were US dollar-denominated.

CEO Dialog Supun Weerasinghe said that due to the lack of a tax shield the company takes borrowing in US dollar terms. The company aims to make investments of around US$ 250 million a year. The company is limited from making increases in prices that are rupees denominated when the currency depreciates. Television content for Dialog TV must be paid in dollar terms and there is limited scope to pass this on to the consumers. Weerasinghe said that there were significant impacts on profitability when the currency depreciates.


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