Sri Lanka’s Prime Minister proposes to privatize national carrier, SriLankan Airlines
Sri Lanka’s Prime Minister Ranil Wickremesinghe last week proposed to privatise the country’s national carrier, SriLankan Airlines.
He explained that the loss-making state entity needed to be privatized as the government of Sri Lanka is currently engaged in a path to get the country’s economy back on track after facing multiple challenges.
“The loss for the year 2020-2021 alone amounts to Rs. 45 billion. By 31 March 2021, the total loss was at Rs. 372 billion. Even if we privatise Sri Lankan Airlines, this is a loss that we must bear. You must be aware that this is a loss that must be borne even by the poor people of this country who have never stepped on an airplane,” Wickremesinghe said during his recent address to the nation.
SriLankan Airlines recorded a growth when it was engaged in a joint venture with Emirates Airlines.
OSL take:
The government of Sri Lanka is looking at a reforms process that would result in the restructuring and privatizing loss making state entities. Sri Lanka’s national carrier, SriLankan Airlines, is now in the line of privatisation given the massive losses incurred due to the pandemic. Nevertheless, privatisation moves of the airline has opened up a new business/investment opportunity in the country. Given Sri Lanka’s geographical positioning in the Indian Ocean, identification as a must visit tourist destination by international media and the strong trade ties enjoyed by the country have all increased the business potential in the tourism industry as well as in overall economic activities. These have resulted in growing business/investment opportunities in Sri Lanka’s maritime industry. There is also a demand to develop supplementary infrastructure facilities as well. Therefore, foreign businesses/investors could look at opportunities in Sri Lanka’s aviation industry.
| Article Code : | VBS/AT/25052022/Z_10 |