MIHIN - multi-millions down the drain
The Ministry of Finance and Planning reveals that Mihin Lanka (Pvt) Ltd. has incurred a colossal loss of Rs.8,877 million during the past four years. Mihin Lanka commenced operations in 2007, and to date, the airline has not generated any profit.
The net loss of Mihin Lanka after paying taxes to the government was Rs.195 million in 2007, which figure had gone up to Rs.3161 million in 2008. In 2009 the losses rose to Rs.4300 million, while last year the net loss has been tabulated at Rs.1221 million.
It is also revealed that the airline has been incurring expenses amounting to Rs.195 million in 2007, Rs.4970 million in 2008, Rs.1080 million in 2009 and Rs.2488 million in the year 2010.
According to the Ministry of Finance and Planning, the current workforce at Mihin Lanka stands at 151, which translates into an expenditure of Rs.0.17 million for each employee.
An official from the Ministry of Finance and Planning told LAKBIMAnEWS that Mihin Lanka is currently being run as a loss-generating enterprise and if it were to continue in this vein, it would be a severe strain on the Treasury.