As profits slide and public finances remain strained, Sri Lanka’s airport operator finds itself under scrutiny after paying hundreds of millions in bonuses and perks to staff and directors.
The Airports and Aviation Services (Sri Lanka) (Private) Company recorded a significant decline in profits in 2024, with earnings falling by 25 percent to Rs. 21.108 billion, down from Rs. 28.122 billion the previous year. Despite this sharp drop, the company paid out Rs. 664.6 million in bonuses, according to observations by the National Auditor.
Although the audit note refers to a bonus payment for 2025, it is widely understood that this amount relates to performance in 2024. The revelation has raised questions, particularly given Sri Lanka’s fragile economic situation.
In 2023, the Airports and Aviation Services Company distributed Rs. 178.8 million in bonuses to 3,589 employees, including an advance bonus of Rs. 50,000 per employee. These payments were made during a period when the country was effectively bankrupt. The National Auditor further notes that each employee received a year end bonus of Rs. 125,000.
In addition to bonuses, the company paid Rs. 514.5 million as holiday pay. The audit also highlights that directors were overpaid by Rs. 67 million in fuel allowances, exceeding approved limits. Fuel allowances had been granted to 277 officers.
Dividend payments to the government amounted to Rs. 1.286 billion in 2024, reflecting only a modest 3 percent increase. At the same time, staff salaries and benefits continued to rise. Total remuneration and benefits climbed to Rs. 14.294 billion, a 30 percent increase from the previous year, placing further pressure on profitability.
Retirement benefit obligations exceeded Rs. 9.3 billion in 2024, compared to staff costs of Rs. 8.128 billion in 2019.
Turnover rose by 14 percent to Rs. 43.897 billion in 2024, driven largely by passenger departure taxes, along with income from duty free retail, advertising, lounges, food and beverage outlets, rentals, landing and parking fees, and airside charges. However, aviation related revenue grew by only 3 percent.
Retired Air Force Chief H.D. Abeywickrama, who currently heads the company, stated, “We proudly report an operating profit of 19.6 billion rupees.” Operating profit in 2023 stood at Rs. 19.3 billion.
