Cabinet checks-in to SriLankan Airlines restructuring

Wednesday, 2 November 2022 04:17 - - {{hitsCtrl.values.hits}}

Finance Ministry’s newly set-up State-Owned Enterprises Restructuring Unit tasked to study methodology and make recommendations

The Cabinet of Ministers on Tuesday approved the move to restructure SriLankan Airlines Group.

A statement from the Government said the Cabinet recognised the need to restructure SriLankan Airlines as well as its subsidiary companies.

This will be done by handing over a considerable amount of shares and the management of these entities to investors selected through a transparent procurement process.

Based on a proposal submitted by Ports, Shipping and Aviation Minister Nimal Siripala de Silva, the Cabinet of Ministers decided to task the State-Owned Enterprises Restructuring Unit of the Finance Ministry to study the methodology and make necessary recommendations.

Minister de Silva first announced restructuring plans in late August. The move revolves around sale of 49% stakes in SriLankan Catering, SriLankan Ground-handling and SriLankan Airlines and paying off $ 1 billion worth foreign and domestic debt as well as other dues.

The national carrier operates with Rs. 450 billion accumulated losses at the end of 2020/21 financial year.

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