A Brief Colonial History Of Ceylon(SriLanka)
Sri Lanka: One Island Two Nations
A Brief Colonial History Of Ceylon(SriLanka)
Sri Lanka: One Island Two Nations
(Full Story)
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Thiranjala Weerasinghe sj.- One Island Two Nations
?????????????????????????????????????????????????Monday, July 3, 2017
Total Privatization – Only Solution For SriLankan Airlines
In terms of publicity, last Sunday was a bad day for the national carrier SriLankan Airlines,
its Board of Directors and the major shareholder, the state of Sri
Lanka. Articles were published in all major English language Sunday
publications and Colombo Telegraph. They all contained the many negative
aspects of the lossmaking airline besides condemnation of the Board of
Directors and CEO. Wide publicity was given to the meeting between the
Chairman, Directors and CEO of the airline with the President, Prime
Minister and several cabinet ministers.
The
only exception was the state-owned English language Sunday publication.
Chairman Ajith Dias was quoted stating “A restructuring program of our
own is needed, if there is no foreign interest in this airline. We want
to propose steps on how to bring the company back to profitability in
two years, by consolidating the airline’s operations, shedding
lossmaking routes and focusing on profitable ones.” It is pertinent to
question, what was the airline doing during the last two and half years
whilst waiting for PPP to happen? Was there no Plan B in case Plan A
failed? Foresight and proactiveness seems to be alien to the carrier.
The Chairman has further stated, “If
we take the political interference out, and commit to implement this
(restructuring plan) over the next two years, it will be possible to
make it a profitable airline again.” His close relationship with the
Prime Minister being no secret, it is difficult to understand how
‘political interference’ can be taken out when his own appointment was
for the purpose of carrying out political directives, as observed in his
many decisions, at times even over-ruling decisions by a majority of
Board members.
Dias
is being disingenuous in promising profitability in next two years.
This writer, in an essay titled “Brighter or Darker skies over SriLankan
Airlines’ published in Sunday Island and Colombo Telegraph last Sunday
wrote of Net Operating Profit (Surplus) / Loss (Deficit) derived from
the airline’s core business activity. During the two financial years
under his stewardship, the airline suffered Net Operating Losses
(deficit) of USD 87 million in 2015/16 and USD 111 million in 2016/17, a
26% increase, despite more favorable fuel prices from previous year.
Cost of loan servicing, penalty charges for cancelled aircraft and
exchange losses does not apply to calculation of Net Operating Profit /
Loss in USD.
Nevertheless,
abusing and mismanaging the national carrier is not the sole
prerogative of the Board and a few staff as evidenced in the Weliamuna
Report. The major shareholder as well as various other interest groups
carry their share of blame.
When
the decision was eventually made to discontinue traditionally
loss-making flights to Paris, Frankfurt and Rome, several interest
groups protested, especially the travel community. Some stated, French,
German and Italian tourist markets to Sri Lanka would collapse as a
result.
Given
below are tourist arrival figures from the said three countries,
obtained from Sri Lanka Tourism Development Authority website.It
is a comparison of tourist arrivals during winter months of November to
April immediately before and after discontinuation of flights. Readers
please note, figures from Italy are those of 2014/15 and 2016/17 as
flights to Italy were discontinued in March or April 2016 whereas Paris
and Frankfurt flights were discontinued in October 2016. Rather than
collapsing, all markets have shown a positive growth, a clear indication
other carriers have filled the void created by the national carrier’s
withdrawal. Had
flights continued, losses in 2016/17 would have been greater. It is a
win win situation with the national carrier reducing losses and the
country not losing tourist markets from France, Germany and Italy. Had
the withdrawal been implemented shortly after the unity government took
office, losses too could have been reduced earlier.
It
is understood, Minister for Public Enterprises Development, line
minister for SriLankan Airlines had taken exception to the carrier’s
failure to keep his ministry informed of the agreement signed by
SriLankan Airlines on October 4, 2016 to terminate the purchase
agreement for three Airbus A350-900 aircraft. However, in view of the
decision taken by Committee on Economic Management (CCEM) chaired by
Prime Minister Wickremesinghe on September 28, 2016 to cancel the three
aircraft (one had been cancelled previously with a penalty charge of USD
17 million) and related correspondence between Prime Minister’s office
and the airline being copied to the line ministry, the line minister
cannot claim being kept in the dark. His broadside of being “kept in the
dark” is of extreme pettiness. If feeling aggrieved, he should
rightfully take up the issue with his Prime Minister, the head of CCEM
for communicating directly with an institution under his ministry.