Home / Front Page/ Crucial meeting of Ministerial Committee on SriLankan Airlines today

Crucial meeting of Ministerial Committee on SriLankan Airlines today


Comments / {{hitsCtrl.values.hits}} Views / Wednesday, 3 January 2018 00:05


 

  • Decision to be taken on resignation offer of SriLankan board members
  • New board expected to be appointed to carry out restructuring

 

By Chathuri Dissanayake

The Ministerial Committee on SriLankan Airlines is set to meet today with the resign offer of six members of the SriLankan Board likely to be taken up with expectations of a new board being appointed to make way for restructuring of the troubled business entity, a top official confirmed.

The Committee headed by the Prime Minister Ranil Wickremesinghe will also carry forward the restructuring discussion on the cash-strapped national airline. 

British consultant Nyras Consulting Company, specialising in the global aviation sector, was appointed to lead the restructuring of the carrier. The consultants, who have been tasked with restructuring and finding an investor for the airline, presented their first report to both committees last month.

The preliminary report by the consultants outlined a restructuring program under five broad areas - managing the right size and type of aircraft fleet, debt restructuring, tax concessions, network rationalising and fuel price - to restructure and improve its financial position. The consultants had expressed confidence in finding a suitable investor once the restructuring was complete.

The SriLankan Airlines Board of Management’s offer to resign from their posts came two days after this preliminary meeting. A letter detailing a board decision by six of the seven board members to offer to resign was submitted to the Prime Minister’s office on 22 December 2017, Sri Lankan Chairman Ajit Dias confirmed to the media later. 

However, no decision has been taken on the offer since then. Public Enterprise Development Minister Kabir Hashim and ministry secretary Ravindra Hewavitharana both told the Daily FT that they were not officially informed about the offer made by the board.

However, it was speculated that the offer to resign may have stemmed from an earlier discussion within the officials committee suggesting that it would be more appropriate to appoint a new board to carry out the changes.


Share This Article


DISCLAIMER:

1. All comments will be moderated by the Daily FT Web Editor.

2. Comments that are abusive, obscene, incendiary, defamatory or irrelevant will not be published.

3. We may remove hyperlinks within comments.

4. Kindly use a genuine email ID and provide your name.

5. Spamming the comments section under different user names may result in being blacklisted.

COMMENTS

Today's Columnists

Finishing the job of ending poverty in South Asia

Thursday, 18 October 2018

“I have a four-year-old son back in my village. I want to make a better life for him,” says Sharmin Akhtar, a 19-year-old employee in one of Dhaka’s many flourishing garment factories. Like thousands of other poor women, Sharmin came down to B


Depreciating rupee: Avoiding a money-go-round

Wednesday, 17 October 2018

Sri Lanka’s excessive reliance on foreign capital to finance investment under favourable external financial conditions is now leading to disruptions, as those conditions change in a decisive interest rate tightening phase in the United States. As U


Responsible water stewardship in Sri Lanka

Wednesday, 17 October 2018

Unlike many of our regional neighbours, Sri Lanka is blessed with an abundant water table. However, many companies do not feel the full value of this precious resource due to the limited regulation and monitoring of fresh water extraction for busines


Economy in disarray, banks flourishing; can this be true?

Wednesday, 17 October 2018

It is earlier reported that the growth in bank credit accelerated in August despite the tight credit and money conditions and rising non-performing loans in the banking sector. It is further reported that the year-on-year (YoY) growth in credit accel


Columnists More