SriLankan Airlines’ 2009 Annual Report contains a query from the company’s auditors regarding the viability of the airline. In the face of what is effectively a Rs. 10 billion loss Ernst & Young have expressed “doubts that the company (SriLankan Airlines) will be able to continue as a going concern.”
Figures in the 2009 Annual Report reveal that the company’s liabilities now exceed its assets by an extraordinary Rs. 8,159 million (Rs. 8.1 billion).
A drastic reversal of the situation just a year ago when the airline’s assets exceeded its liabilities by Rs. 3,074 million.
The turn around from Rs. 3 billion in the black in 2008 to Rs. 8.1 billion in the red in 2009 represents a Rs.11 billion year on year decline in the position of the company’s assets — a 100 million dollar change of fortunes.
A colossal loss by any standards but crippling for a small third world airline.
Even allowing for the generally difficult conditions faced by airlines worldwide as a result of the global economic crisis the situation at SriLankan Airlines is exceptionally dire.
Read Full Story : http://www.thesundayleader.lk/20090927/probe.HTM