Finding business partner for Srilankan

Finding business partner for Srilankan

Sri Lanka’s government will strengthen the balance sheet of debt-ridden SriLankan Airlines by taking over some of its debt and is seeking an international airline partner or an investor, who can manage and invest in the airline, Prime Minister Ranil Wickremesinghe said.

SriLankan will also seek to cancel the four aircraft ordered from Airbus, where production has not yet started, he told reporters in Colombo. He said SriLankan Airlines was a ‘landmine’ for the economy with total debts of 3.2 billion dollars.

According to analysts, no partner will be willing to take it over without reducing the airline’s debt. Minister Sarath Amugunugama said the cabinet of ministers had decided to seek an international partner to avoid having to close down the airline. Some of the losses of budget carrier Mihin Lanka was also hidden inside SriLankan.

Having a plan to fix the state airlines is believed to be a ‘prior action’ under a strategy developed with the international Monetary Fund to fix Sri Lanka’s broken state finances and request for proposals from investors will be called in the near future.

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SECTOR : Transport & logistics
PROJECT VALUE : 3.2 billion dollars
OPPORTUNITY CODE : VBS/OP/26042016/X_1

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