Sri Lanka’s national carrier, one of the country’s biggest loss-making state-owned enterprises, will not be sold, according to Minister of Ports and Shipping Nimal Siripala de Silva. Despite numerous unsuccessful privatization attempts, the Minister emphasized that restructuring efforts are underway.
During a media briefing titled “Collective Path to a Stable Country” at the Presidential Media Centre (PMC), Minister Nimal Siripala de Silva highlighted that current regulations permit the transfer of up to 49% of Sri Lanka’s national carrier’s shares to another entity, yet there has been no interest from suitable investors so far.
In a separate address to Parliament, President Ranil Wickremesinghe underscored the ongoing importance of restructuring national debts for the country’s economic advancement. Despite political skepticism, he emphasized the positive impact of these measures on national interests.
It is underscored that focusing solely on narrow political objectives without acknowledging globally accepted realities would be unsuitable in this context.
President Wickremesinghe has taken initial steps toward overcoming recent challenges and aims to prevent the country from regressing to the conditions of two years ago.
This year’s budget allocates resources not just for regional councils, local government bodies, and state departments, but also for social security benefits such as “Aswesuma.” These allocations are made independently of upcoming elections.
Regarding Sri Lankan Airlines, the government’s strategy prioritizes restructuring over outright sales. Sri Lankan law permits the transfer of only 49% of the airline’s shares to another entity. However, global interest in this opportunity has been minimal, with only six individuals expressing interest, none of whom were deemed suitable. Even if extended to a Sri Lankan entrepreneur, their capabilities would need to be demonstrated.
In addition, the Japan International Cooperation Agency (JICA) plans to resume discussions on their projects next week, highlighting another advantage of debt restructuring. Despite interest from Chinese companies in airport projects, contractual obligations with Japan require contracts to be awarded to Japanese firms.
Furthermore, management of the financially challenged Mattala Airport is set to transition to a joint venture involving Russia and India. Progress is also evident at Kankesanthurai port, with India providing USD 69 million in assistance. During a recent visit, Indian Foreign Minister Dr. S. Jaishankar confirmed plans for an upcoming ferry service between Sri Lanka and India.
Sri Lankan Government Absorbs 50% of SriLankan Airlines’ Debt to Facilitate Restructuring
