Sri Lanka appoints international consultant to restructure Sri Lankan Airlines
Ada Derana: In a significant development, Sri Lanka’s aviation sector has reported a substantial profit of Rs. 22 billion in the period spanning from January to August 2023, said Minister of Ports, Shipping and Aviation Nimal Siripala de Silva.
Speaking during a news briefing held at the President Media Centre (PMC) recently focusing on the theme ‘Collective Path to a Stable Country’, the Minister highlighted that approximately Rs. 10 billion from this profit has already been contributed to Treasury, providing a much-needed boost to the country’s finances.
He further said that efforts are underway to restructure Sri Lankan Airlines, the national carrier, with a focus on improving its operations and financial performance. Importantly, the government is committed to ensuring the job security of the approximately 6,000 employees of the airline during this restructuring process. To facilitate this, an international consultant has been appointed. This consultant is expected to bring expertise and best practices to guide the restructuring efforts, he said.
The Minister highlighted the success of operations at Palali International Airport, emphasizing that the airport has completed 200 flights. This achievement underscores the airport’s increasing significance and efficiency in handling air travel.
The Minister also pointed out that Bandaranaike International Airport, Katunayake once a scarcely frequented facility, has now evolved into a bustling aviation hub. Notably, in the month of August, it catered to the needs of over 650,000 passengers. This surge in passenger traffic has contributed significantly to its financial prosperity.
OSL take:
Sri Lanka’s programmed to restructure state owned enterprises (SOEs) has presented a host of new business/investment opportunities. With Sri Lanka’s economy showing great resilience and returning to a growth path after facing challenges posed by the global pandemic and the economic crisis that followed it and the increase in economic activities at present serve as a confidence booster for foreign businesses/investors to explore the growing business/investment opportunities in Sri Lanka. The steady growth in tourist arrivals to Sri Lanka and the expansion in the country’s airport and aviation industry, an investment in Sri Lanka’s national carrier could be a lucrative investment opportunity. Given Sri Lanka’s target of becoming an emerging business destination in the South Asian region supported by the country’s geographical positioning in the Indian Ocean and the many trade agreements as well as trade concessions enjoyed by the country, Sri Lanka will undoubtedly be a strong player in the Indian Ocean region. Foreign businesses/investors could therefore confidently explore the expanding opportunities in Sri Lanka, especially in the SOE reforms programmed
| Article Code : | VBS/AT/20231017/Z_6 |