Budget airline Mihin Lanka will cease operations from today in line with the current Government's policy to amalgamate the airline with the national carrier Srilankan.
The budget airline launched in 2007 was operating at a huge loss for several years with some economic analysts attributing the losses to mismanagement while others to under capitalization.
National Enterprises Development Deputy Minister Eran Wickramaratne told a media briefing yesterday that Minin Lanka would only be amalgamated with Srilankan and that it would not be a merger. He said the Mihin Lanka license would not be cancelled but transferred to the Government.
The deputy minister said the airline had business class seats though it was promoted as a budget airline.
Mihin Lanka was a low-fare airline based in Colombo and operated flights from Bandaranaike International Airport to a number of cities in the Indian subcontinent, the Middle East the Persian Gulf, South East Asia and Eastern Africa. (Yohan Perera)