Oct 16, 2017

SriLankan Airlines to be restructured soon

The massive loss making SriLankan Airlines is to be restructured to make it a viable entity as efforts to find a management partner have not being materialized. The national carrier has obtained financial facilities from several local banks and foreign agencies . 

This includes the Bank of Ceylon, the People’s Bank, Standard Chartered Bank, Commercial Bank, Amana Bank, Air Lease Corporation and the Ceylon Petroleum Corporation (for fuel).

The total amount involved is US$ 518.35 million of which US$ 272.79 million still remains to be paid.

The Treasury has agreed to issue letters of Comfort to Bank of Ceylon and the People’s Bank on a recommendation made by the new Cabinet sub-committee appointed to restructure the airline.

A new Cabinet sub-committee and a committee of state officials have been tasked with restructuring the airline.

The Cabinet Committee is headed by Prime Minister Ranil Wickremesinghe and it other members are Ministers Kabir Hashim,Mangala Samaraweera, Dr. Sarath Amunugama,,Nimal Siripala de Silva,and Malik Samarawickrama

The State Officials Committee is headed by Dr.H.S. Samaratunga – Secretary to the Ministry of Finance and Mass Media

Other members are Ravindra Hewawitharana – Secretary to the Ministry of Public Enterprise Development, Thilan Wijesinghe – Chairman of the National Agency for Public Private Partnership, Ajith Dias – Chairman of SriLankan Airlines, Mano Tittawella – Senior Advisor to the Ministry of Finance and Mass Media and Dr. Roshan Perera – Director of the Central Bank of Sri Lanka & Ministry of Public Enterprise Development.