With a continued failure to attract interested buyers, the Government of Sri Lanka has announced that any party which purchases the country's nation airline, Sri Lankan Airlines, will not have to take responsibility for USD 510 million of the airline's existing debt.
The Sri Lankan government is making efforts to sell the airline as it is one of the companies that had been hit worst following the Covid-19 pandemic and the economic crisis that the country faced in 2022, and has since been operating at a loss, exerting pressure on the state budget.
While the latest window for applications of interest from prospective buyers is due to close today, Sri Lanka's Minister for Ports, Shipping and Aviation Nimal Siripala de Silva announced that the cabinet has decided to extend the deadline by another 45 days, and that so far they had not received a single application.
De Silva stated that the government has decided to bear one third of the USD 1.973 billion debt declared by the airline in 2023 so as to offer an incentive to investors.
He further said that USD 60 to 70 million will be injected to Sri Lanka in the coming six months and this will be utilized to retain 6000 staff members of the airline until the company can be privatized.
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