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SriLankan awaits Cabinet decision on sale of 49% stake in subsidiaries

01 Sep 2022

The SriLankan Airlines is awaiting Cabinet of Ministers approval in order to proceed with the decision announced by Aviation Minister Nimal Siripala de Silva to sell a 49% stake in the SriLankan Catering Ltd. and SriLankan Cargo Ground Handling operations.   Speaking to The Morning, SriLankan Airlines Chairman Ashok Pathirage said that the airline is waiting for the relevant Cabinet decision, and therefore cannot predict a time period for the transition at the moment. De Silva stated that the Government is looking to sell a 49% stake in each of SriLankan Airlines’ catering and ground handling operations with 51% of each continuing to remain under State control. SriLankan Airlines has not only prevailed through each challenging chapter that the country has had to navigate but endeavoured to help the country get back on its feet, Pathirage stated. “For the past four decades, we have been flag-bearers of the nation through thick and thin. From sustaining travel and trade links between Sri Lanka and the world as other airlines cut back on flights to Sri Lanka due to the country’s ongoing economic crisis to bringing down stranded Sri Lankans home during the thick of the Covid-19 pandemic in the recent past, SriLankan Airlines has always been a pillar of strength to the nation. The resilience of our legacy is really the resilience of our people, and I would like to thank every employee of SriLankan Airlines for their show of dedication and commitment that has seen us through difficult times,” he said.  Meanwhile, the airline has won close to 50 international awards in the last decade alone. SriLankan Airlines stated it has been the backdrop of commercial aviation in Sri Lanka since the airline began 43 years ago. Launched on 1 September 1979, SriLankan Airlines’ 43rd anniversary takes place today (1). However, the Government has announced plans to privatise part of the national carrier. According to de Silva, this move was proposed as the Government does not have the financial ability to support the airline to repay the mortgages and loans it obtained, as the airline’s operations were severely affected for the past few years due to the lack of tourism and the global Covid-19 pandemic, high aviation fuel prices, and other overheads.


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