SriLankan Airlines makes Rs79bn profit after rate mis-targeting ends

State-run SriLankan Airlines has reported a 79 billion rupee profit in the first eight months of 2023, official data showed, with exchange gains adding to the bottom line as the central bank stopped mis-targeting rates.

SriLankan and other state enterprises like the Ceylon Electricity Board and Ceylon Petroleum Corporation that have large dollar borrowings, which trigger book losses when the central bank cuts rates with inflationary open market operations and depreciates the currency.

In addition, costs also zoom up as the currency depreciates, driving operational losses if sales are denominated in domestic currency, driving operational losses.

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