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12 May 2016


No takers for revamping SriLankan Airlines yet

The Sri Lankan government has made it clear that no airline company has “formally expressed” interest in the proposed revamping of SriLankan Airlines.   Responding to a query from The Hindu on whether Qatar Airways was being contemplated as a possible international partner, Eran Wickramaratne, Deputy Minister of the Public Enterprise Department under whose purview the airline comes, said “there is no specific party. There are many names that keep coming up from time to time. No one has formally expressed interest.”   “Every party talks to very many different people in the government,” he added.   Inevitable move   The restructuring of the airlines had become inevitable as the organisation had been in the red for the past eight years and its liabilities stood at $ 3.2 billion as on December 31, 2015.   Explaining how the revamp plan would be carried out, the Minister said the balance sheet of SriLankan Airlines had to be restructured first as it was “not saleable.” For this, valuation had to be carried out by engaging one or more parties.

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