SriLankan Airlines get more letters of comfort for state bank loans

ECONOMYNEXT – Loss-making state-run carrier SriLankan Airlines had got letters of comfort from the Treasury to allow it to borrow an addition 50 million US dollars from state banks, a finance ministry report showed.

Up to 2016 SriLankan and Mihin Air had been given Treasury guarantees of 160 million US dollars to borrow covering 80 million US dollars of borrowings from state-run Bank of Ceylon and People’s Bank.

In 2017 additional letters of comfort has been given to cover 25 million dollars of loans each from Bank of Ceylon and People’s Bank, taking the total up to 210 million US dollars.

In 2014, letters of comfort had also been issued for Lanka Sathosa, another loss-making state enterprise which is mired in corruption allegations allowing it to borrow 56.5 million US dollars from Bank of Ceylon and 21.5 million from People’s Bank.

It is not clear whether the funds were repaid. (Colombo/June05/2018)

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