Treasury will have to bear part of SriLankan debt even after restructuring: Minister

24 March 2023 06:16 pm Views - {{hitsCtrl.values.hits}} 6 Bookmark

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The Treasury would have to bear a part of the debt burden of the SriLankan Airlines even after it was restructured, Ports, Shipping and Aviation Services Minister Nimal Siripala De Silva said today.

He told Parliament that the total debt of the SriLankan was USD 1.2 billion and that they were expecting to raise about USD 500 million by handing over the ground handling services and SriLankan Catering was also of some value.

“We will be able to pay off a considerable amount of the SriLankan debt by restructuring it. We will be able to raise some USD 500 million by handing over the ground handling services. SriLankan catering is also of some value. The rest of the debt will have to be borne by the Treasury,” he said.

The Minister said the restructuring process was underway and that the Financial Advisory group Lazard was working with international guidance to prepare the expression of interest so that Sri Lanka could get maximum benefits.

The Minister said his first priority was to ensure job security of the SriLankan employees after the restructuring process.(Ajith Siriwardana)

Comments - 6

Sell it off and start a new carrier Friday, 24 March 2023 08:09 PM

The culture of Sri Lankan will continue to lead it to losses. Government should for the sake of the public and reducing further losses from it sell it off as soon as possible. It can start a new airline with Lanka it the name soon after, and take maybe 5% of the actually capable staff of Sri Lankan onboard. We will be better off without the rest of the 95% of staff. Sri Lankan is an albatross around the neck of the public.

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Jude Saturday, 25 March 2023 07:17 AM

SriLankan airlines accumulated loss of Rs.372 Billion and The first 4 months of 2022 the total loss $248 Billion. This is a humongous losses, can't understand why Srilankan airlines NOT grounded!??? It's a huge burden for the Treasury!! Let's ground SriLankan airlines and government must charge all airlines touching Lankan airports with a substantial Landing Fees, this way government can make REVENUES in billions rather than losing like Trillion rupees!!!

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Jude Saturday, 25 March 2023 07:29 AM

No one gonna takeover SriLankan airlines with a debt of over 1 Billion dollars!! Since it was owned by government any potential buyers will insist government to absorb HALF of the debt!! However, SL government should divest from airline business at any cost, rather than bleeding close to Trillion rupees!!

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Jude Saturday, 25 March 2023 07:33 AM

The reason why successive governments wanted to own Srilankan airlines is all Politicians want to roam globally on public dime, and these politicians using it like UBER TAXI.

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cb Saturday, 25 March 2023 11:39 AM

More loans from IMF, India

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Spartacus Saturday, 25 March 2023 01:12 PM

All politicians mainly in the Mahinda era bankrupt this airline severely. The arrogant losses of Mihin Lanka were also added to Sri Lanka. Now, we the public like ponnayas are bearing all the losses while these same politicians live a nonchalant life.

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