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SriLankan Catering awaits technical evaluation before divestiture

20 Sep 2022

 
  • Aviation Min. Secy says unsolicited proposals to also be considered
  • Adds date to call EOIs yet to be finalised
  By Imesh Ranasinghe    The Sri Lankan Government is open to accepting unsolicited investor proposals for SriLankan Catering Ltd. and the Ground Handling Unit of SriLankan Airlines, while the technical evaluation is yet to be completed for Cabinet approval, stated Secretary to the Ministry of Shipping and Aviation, K.D.S Ruwanchandra. Speaking to The Morning Business, he said that authorities have not yet decided on a final date for when the Expressions of Interest (EOIs) will be officially called for the catering and ground handling arms of the national carrier. He said that the technical evaluation is yet to be completed, which will have to be approved by the Cabinet of Ministers before officially calling for EOIs, but added that interested investors could still submit unsolicited proposals. In August, Minister of Shipping and Aviation Nimal Siripala de Silva said that the Government had decided to call for EOIs from private investors to invest in a 49% stake and the administration of SriLankan Catering Ltd. and SriLankan Airlines Ground Handling as a part of its restructuring process, where the investor funds will be used to reduce the huge debt burden of the airline. According to the Minister, the total debt of SriLankan Airlines had reached $ 1.126 billion (Rs. 401 billion).  SriLankan Catering and Ground Handling have been profitable in the past 10 years, except during the pandemic, as airline travel was limited.  


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