(COLOMBO) – An estimated 6,000 employees are likely to be axed from Sri Lanka’s national carrier SriLankan Airlines if it is unable to show progress of its operational and financial units within the next six months, Shipping and Aviation Minister Nimal Siripala de Silva warned on Tuesday.
Minister de Silva said the Government decided to repay USD 510 million out of the USD 1.2 billion in loans borrowed from several commercial banks and other institutions in order to enable the airline to continue its operations.
He said that unnecessary expenditures by the airline should be cut, better financial discipline should be implemented in six months, and the company administration and trade unions should work in unison toward this effort.
Sri Lanka Airlines has been blamed and subjected to extensive criticism due to its constant delays in operations from time to time. The delays have annoyed passengers and inconvenienced them in the recent past leading to large operational losses.
Moves are also underway to start a restructuring program for SriLankan Airlines within the next six months with an attractive financial balance sheet.
At present some 16 aircraft are pressed into service to operate six long-distance and 29 short-distance flights, according to company officials.
