Sri Lankan Airlines needs debt restructuring, raising capital: committee

ECONOMYNEXT – A committee appointed by President Maithripala Sirisena has recommended debt re-structuring and capital raising as the best way forward for loss-making state-run SriLankan Airlines, a statement from President’s office said.

SriLankan had lost 40 billion rupees in the last nine months.

The committee had also looked at options of liquidating the airline and management agreement, but committee chair State Minister Eran Wickremeratne had had told President that debt restructuring and capital raising would be the most suitable option.

Losses accumulated since and Emirates was terminated as managing shareholder has been funded by debt.

Capital injected by the Treasury from people’s taxes had also been eaten away in losses under state management.

Minister Harsha de Silva said capital could be raised from a strategic partner. (Colombo/Jan28/2018)

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