Sri Lankan airports reduce losses in economic crisis

State-run Airport and Aviation Services (Sri Lanka) Ltd (AASL) entrusted with the task of airport operations ran at a total loss of Rs. 755 million last year as the country gradually opened up for international traffic, but it was a sharp drop from 2020 and largely due to the airport being closed or partially open due to the COVID-19 pandemic.

Coupled with the reduction of administrative cost and Net Finance cost, the bottom-line impact of the AASL showed an improvement in 2021 having a sharp reduction of a loss to Rs. 755 million in 2021 from the loss of Rs. 3,733 million in the previous year, the company balance sheet showed.

Operational revenue of the AASL has declined by 5 per cent to Rs. 7.4 billion in 2021.

The revenue streams of AASL which mainly comprise the aeronautical operations and nonaeronautical activities amounted to Rs. 2.3 billion and Rs. 5.1 billion, respectively in 2021.

However, the other operational income of AASL in 2021 has shown a marginal decline to Rs. 3.8 billion compared to Rs. 3.9 billion in 2020.

Minister of Ports, Shipping and Aviation Nimal Siripala de Silva told the Business Times that they will initiate action to expand the aviation sector by allowing new companies to operate domestic flights in the country.

He noted that the AASL has been entrusted with the task of selecting these companies after calling expressions of interest.

AASL will have to generate its own income by implementing projects aimed at developing the aviation sector, he added.

AASL operations are one of the key industries which facilitates for connecting people, countries, and cultures, providing access to global markets by generating trade and tourism, and forging ties between developed and developing countries, officials said.