BIA musters Rs 16.71 bn profit in 2022 | Daily News

BIA musters Rs 16.71 bn profit in 2022

First high-net-worth individual at BIA exclusive services receives an award.
First high-net-worth individual at BIA exclusive services receives an award.

Airport & Aviation Services (AASL) a private company fully owned by the government says that even after facing the COVID-19 pandemic and economic recession, Bandaranaike International Airport, (5th place of Best Airports category in 2022 by Global Region-Indian/South Asia) reported a profit of Rs. 3,967 million in 2021 and Rs. 16.7 billion up to June 2022.

However, there was an overall operating loss for the company and this was due to the repayment of the loan instalments in foreign exchange on the loans obtained for MRIA. “We wish to emphasize that we have continued to manage and sustain our company during these trying times on the meagre revenue earned and using our reserves that were prudently built up before 2019,” a release from AASL said. “Up to 2019, AASL employing nearly 4,000 employees had been performing exceptionally well and were a profit-making enterprise that regularly contributed large amounts of funds to the state coffers by way of dividends and taxes. However, due to the COVID-19 global pandemic which affected the global aviation sector, international passenger and aircraft movements came down drastically. In addition, the economic downturn triggered by the Easter attack in 2019 followed by the pandemic harmed our profits.”

As the aviation industry is very resilient to the world economy, health, and political situation, the revenue and profitability of our company are heavily dependent on external factors which are not within our direct control. “We emphasize that the adverse financial situation our company is currently facing is due to these factors and is not a result of mismanagement or poor entrepreneurship whatsoever.”

The total international aircraft movements handled by all airports operated by AASL came down from 62,195 in 2019 to 20,881 in 2020 marking a decline of 66%. The international passenger movements came down from 9.9 million to 2.3 million marking a decline of 76%. This downturn is a global phenomenon and for example, passenger movements of Changi airport in Singapore too had reduced from 62.9 million in 2019/2020 to 1.1 million in 2020/2021 while the total revenue had declined from SGD (S$) 3119 million to SGD (S$) 697 million. This global trend had a toll on our finances as well.

“We reiterate that up to now we have not been a burden to the country’s economy or the taxpayers by any means and we are optimistic that we could regain our position soon with the gradual recovery of the external environment of Sri Lanka. We categorically state that we are not a burden to the state unlike some of the other bleeding SOEs in Sri Lanka.”

 

 


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