Sri Lanka rules out scrapping debt-laden national carrier
Sri Lanka has decided against liquidating its national airline and will scout for a foreign investor, a minister said Thursday, despite warnings the loss-making carrier could drag on the economy. A panel convened by president Maithripala Sirisena to determine the fate of debt-saddled SriLankan Airlines recommended it be retained, but subjected to a major financial restructuring. The airline is estimated to be carrying loans and accumulated losses of nearly US$2b. "We have ruled out the closure of the airline because the process of winding down will also be expensive," state minister of finance Eran Wickramaratne said. Attempts to privatise the airline failed in May 2017 when San Francisco-based private equity firm TPG withdrew its bid for a 49% stake. Since then, there had been no foreign or local investor interest in SriLankan Airlines. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2019-02-01/oneworld/sri-lanka-rules-out-scrapping-debt-laden-national-carrier
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Sri Lanka rules out scrapping debt-laden national carrier
Sri Lanka has decided against liquidating its national airline and will scout for a foreign investor, a minister said Thursday, despite warnings the loss-making carrier could drag on the economy. A panel convened by president Maithripala Sirisena to determine the fate of debt-saddled SriLankan Airlines recommended it be retained, but subjected to a major financial restructuring. The airline is estimated to be carrying loans and accumulated losses of nearly US$2b. "We have ruled out the closure of the airline because the process of winding down will also be expensive," state minister of finance Eran Wickramaratne said. Attempts to privatise the airline failed in May 2017 when San Francisco-based private equity firm TPG withdrew its bid for a 49% stake. Since then, there had been no foreign or local investor interest in SriLankan Airlines. <br/>
