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Submission of bids deadline extended for SriLankan Airlines

Submission of bids deadline extended for SriLankan Airlines

The Morning: The deadline for submission of bids for SriLankan Airlines has been extended by 45 days, says Minister of Ports, Shipping and Aviation Nimal Siripala de Silva.
A live auction was scheduled to take place on 5 March to choose an investor for the divestment of SriLankan Airlines, as per a comment made by the lawmaker during Ada Derana’s ‘Get Real’ segment last week.
However, convening a media briefing recently, the minister revealed that bids would be called for another 45 days before choosing an investor for the national carrier.
Further, the Cabinet of Ministers has green-lighted a proposal for the government to absorb SriLankan Airlines’ outstanding debt to the tune of $ 510 million, the minister added.
In addition, the Cabinet approval has been given to allocate funds to maintain services of the national carrier for another six months.

OSL take:
The Sri Lankan government’s move to restructure a set of key state owned enterprises (SOEs) has presented attractive business/investment opportunities to foreign businesses/investors looking for opportunities in South Asia. Sri Lanka’s geographical positioning in the Indian Ocean and the increase in foreign travelers to the country including thr steady growth in the country’s tourism industry have all expanded business opportunities for the country’s national carrier, SriLankan Airlines. The decision by the authorities to extend the time period for bids enables foreign businesses/investors more time to place their bids. Also, there are other SOEs in the power, energy, insurance, hospitality and health sectors that are also part of the restructuring process that offered more opportunities for foreign businesses/investors.

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Article Code : VBS/AT/20240315/Z_4

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