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Government grapples to revitalize Sri Lankan Airlines


Sri Lanka government is grappling to revitalize the state run national carrier, Sri Lankan Airlines by entering into public private partnership with a foreign airline or an aviation company.



The negotiations with TPG Capital to restructure the airline collapsed following due diligence of the struggling airline with US$ 1billion debt burden.

Sri Lanka finance ministry will seek preliminary bids for SriLankan Airlines Ltd. by next month, ministry sources said. The government expects to be in talks with at least two prospective investors by the first quarter of next year.

The government has called bids and offered to absorb all the company’s debt. in 2016, and eight parties expressed interest in the deal. . Those included U.S. buyout firm Blackstone Group LP and TPG

The company’s accumulated losses have increased to Rs. 141.1 billion ($879 million) as of March 2017.

(LI NEWS)

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