Restructuring SriLankan: Ministers told to submit views on Eran’s proposals

18 September 2019 08:29 am - 7     - {{hitsCtrl.values.hits}}

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At yesterday's Cabinet meeting, President Maithripala Sirisena is reported to have asked the ministers to submit their views on the recommendations made by State Minister of Finance, Eran Wickramaratne on restructuring SriLankan Airlines on the basis of a public-private partnership.

The State Minister in his report to the ministers outlined the financial position of the national carrier and pointed out that the amount owed by SriLankan to the state banks and the Ceylon Petroleum Corporation (CPC) stood at Rs.102.55 billion or US$582 million as at April 30, 2019, with an annual interest payable of US$62 million.

He said the ballooning debt was a contingent liability on the Treasury impacting the country’s credit rating and that the debt component was reaching one per cent of the Gross Domestic Product -- an amount equivalent to Rs.7,300 for every citizen.

The State Minister said the national carrier required an additional sum of US$250 to 300 million in new capital to update the fleet, business practices, competition and tourism demand, but the Treasury was unable to provide such an amount. He said SriLankan would have a cash deficit of US$874 million within the next five years but the new restructuring would enable the airline to break even within a few years. (Kelum Bandara)

  Comments - 7

  • Sunil Wednesday, 18 September 2019 08:35 AM

    What knowledge or expertise do these jackasses have of resurrecting an ailing venture other than ruining it even further? It is they who are primarily responsible for the sad state of affairs of the national carrier. Why not hand it over to well experienced entrepreneurs who have excellent track records and leave them alone to accomplish the task?

    Rds Wednesday, 18 September 2019 08:41 AM

    No restructuring plan will ever work if the government continues to hold the management rights.

    Jude Wednesday, 18 September 2019 08:54 AM

    Srilankan airlines crippling the whole economy of SL!!!

    Jude Wednesday, 18 September 2019 08:55 AM

    Ground Srilankan immediately and save billions of rupees daily!!!

    Jude Wednesday, 18 September 2019 09:03 AM

    All successive governments kept Srilankan flying because politicians wanted to travel free by globe trotting on Lankan public DIME !!! 2009 Emirates management contract was terminated arbitrarily because of FREELOADER politicians were off-loaded to accommodate paying passengers!!! And that was the beginning of end of Srilankan Airlines!!! Since then Srilankan Airlines has accumulated LOSS of Rs.240 Billion !!! WOW !!!

    Jude Wednesday, 18 September 2019 09:09 AM

    Government MUST get out of running commercial airline business!!! All govt should do is, allow private company local or/and international company operate Katunayake airport!! And govt collect landing fees from all airlines touching down Katunayake airport!!!

    DJ Wednesday, 18 September 2019 09:10 AM

    The lies game has begun. Looks like the President has found a partner who will give many kick backs to exploit the National Carrier


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