Colossal Mihin Lanka losses: Some context

Photo courtesy Wikipedia

by Devanesan Nesiah - on 03/07/2014

Through The Republic Square and other media we learn that Mihin Lanka, the brainchild of Sri Lankas current President Mahinda Rajapaksa, lost 2.2 billion over the current financial year. As Colombo Page notes, Civil Aviation Minister Priyankara Jayaratne made this revelation in response to a question posed by United National Party (UNP) parliamentarian Ravi Karunanayaka. The Minister noted that the losses incurred by Mihin Lanka for the financial year 2011/2012 were Rs. 1.9 billion and Rs. 3.2 billion last year. Emphasis ours. In 2012, we highlighted what even at the time were mind-boggling losses by the airline. In response, economist Anushka Wijesinhanoted,

1.

28 Nov

Groundviews @groundviews
Essential reading for mind-boggling figures of Mihin losses | http://www.ft.l /2!"2/""/28/loaded-with-lossesmihin-to-start-flights-to-more-destinations/ # @anushwi$ @%epa&' @(al E%onomi%s&' )l a )srilan a

Anush Wijesinha @anushwi$

*ollow

@groundviews Putting in perspective - Mihin's cumulative losses amount to approx. half of entire PAYE tax revenue paid b citi!ens in "#$#
+:,- .M - 28 Nov 2!"2

Anush Wijesinha @anushwi$

*ollow

@groundviews Another perspective% Mihin's cumulative losses&'o()'s combined spend on free txtb*s+school uniforms+thriposha,nutrition in "#$$
+:/, .M - 28 Nov 2!"2

Anush Wijesinha @anushwi$

*ollow

@groundviews Another perspective% Mihin's cumulative losses & nearl double the capital expenditure on higher education in "#$$ @the rc
+:/- .M - 28 Nov 2!"2

Note that this also is an airline that perversely increases the pay of its Directors the more losses are made.

To

put the airlines losses over the current financial year alone into perspective (leaving aside the 3.2 billion loss incurred last year), its more than the budgetary allocations for the following Ministries over 2013, using data compiled and visualised by The Sunday Times above. In fact, in some cases, Mihin Lankas losses are greater than the budgetary allocations for several Ministries combined.

1. National Heritage 1.5b 2. Co-operatives and Internal Trade 2b 3. Petroleum Industries 132m 4. Re-settlement 437m 5. Child Development and Womens Affairs 1b 6. Minor Expoert and Crop Promotion 930m 7. Coconut Development and Janatha Estate Development 1.6b 8. Parliamentary Affairs 417m 9. Culture and the Arts 1.6b 10.Indegenous Medicine 1.4b 11.Foreign Employment Promotion and Welfare 325m 12.Disaster Management 1.3b 13.Buddha Sasana and Religious Affairs 1.6b 14.Traditional Industries and Small Enterprise Development 923m 15.State Resources and Enterprise Development 430m 16.Labour and Labour Relations 2b 17.National Languages and Social Integration 531m 18.Public Management Reforms 172m

Mihin Lankas losses over the current financial year alone are just shy of the budgetary allocations over 2013 for the following ministries,
1. Sports 2.4b 2. Fisheries and Aquatic Resources Development 2.6b 3. Mass Media and Information 2.7b

We asked two years ago, and reiterate, who is holding the President accountable for this colossal waste of public coffers?