World News | Efforts to Divest Ailing SriLankan Airlines Not Successful: Aviation Minister

Colombo, Jul 3 (PTI) Sri Lanka's efforts to divest shares in the loss-making SriLankan Airlines have not been successful, Minister of Aviation Nimal Siripala de Silva said on Wednesday and clarified that the national flag carrier will undergo restructuring, not sale.

The government in March had extended the deadline for the Expression of Interest (EoI) on the divestiture from possible bidders from early March to April 22 of this year. The time to make final bids shall remain open till the end of August.

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“Despite opposition and trade union claims, the airline cannot be sold outright. The divestiture would be subject to the government retaining its 51 per cent share,” de Silva said, adding, “The interest has been minimal, only six bidders came forward and we were unable to find a suitable partner. It can be granted to a Sri Lankan investor but they have to prove their credentials.”

SriLankan Airlines was one of the four key state-owned enterprises the International Monetary Fund (IMF) had prescribed for restructuring in the USD 2.9 billion bailout programme.

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“Furthermore, the IMF is actively involved in the restructuring process based strictly on legal frameworks, regulations, and objective criteria, without regard to personal considerations,” he said.

Countering opposition leader Sajith Premadasa's argument where he gave examples such as Argentina, Ecuador, and Ghana, which have successfully negotiated a 25 per cent reduction in commercial loans, the minister said, the commercial loans “are distinct from bilateral debts.”

A release from the President's Media Division quoted minister de Silva as saying that the discussions to restructure commercial debt within Sri Lanka are ongoing, with evolving criteria influenced by IMF assessments of each country's economic resilience.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)