Credit Suisse to keep UL flying: Minister

27 December 2017 11:55 am - 7 - {{hitsCtrl.values.hits}}

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While expressing hope that national carrier SriLankan Airlines would not be liquidated, State Minister Lakshman Yapa Abeywardana said the Government had successfully negotiated a long-term credit package of US$ 150 million and a short-term loan facility of US$ 50 million with the Credit Suisse Bank on behalf of the airline.

The Minister added that the loan package of US$ 200 million (Rs. 32 billion) is expected to strengthen the Government’s guarantee for the ongoing discussions with several investors to run the SriLankan as a Public-Private Partnership (PPP).

He said the Government did not intend to liquidate the national carrier under any circumstances but the colossal US$ 702 million (Rs. 108 billion) acts as an obstacle to the successful conclusion of the negotiations.

“The Government has obtained this loan package from the Swiss Bank and the Cabinet has decided to absorb the entire liability of the SriLankan Airlines running to US$ 702 million, which I hope would lead to a successful conclusion of negotiations with prospective investors,” the Minister said. (Sandun A. Jayasekera)

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Comments - 7

Giabao Wednesday, 27 December 2017 01:36 PM

LOL, privatize profits and nationalize losses.

SAM Wednesday, 27 December 2017 02:45 PM

Can you make profit with it and settle the loans or do the people have to pay for the losses that has lost in billions?Have you kept a dead line the same way you have to settle the Credit Suisse?

Lord Wolfstein Wednesday, 27 December 2017 04:15 PM

The absorption of US$ 702 million by the government means to burden the people with this amount.

SENA Wednesday, 27 December 2017 05:35 PM

Even if 1 trillion is pumped to this airline it will not make any difference.

concern Wednesday, 27 December 2017 07:16 PM

It would make a difference to the high paid management

Calistus Jayatilleke Thursday, 28 December 2017 09:05 AM

Better to ground this white elephant rather than fatten some politically appointed directors and highly overpaid staff.

Jagath fernado Thursday, 28 December 2017 09:54 AM

Ordinary poor has to bear the burden of follies of MR and brother in law.......isnt that true

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Credit Suisse to keep UL flying: Minister

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