Sri Lanka seeks investors for airline with $US1b of debt

Updated: 00:00 GMT, Jan 1, 1970 | Published: 03:59 GMT, Aug 22, 2018 |

Sri Lanka has revived the process of privatising the state-run carrier that is saddled with at least $US1 billion of debt, a year after talks with sole bidder TPG Capital collapsed following due diligence of the struggling airline.


The island nation’s finance ministry will seek preliminary bids for SriLankan Airlines by September or October, Mano Tittawella, an adviser to the ministry, said in an interview late Monday. There has been “fairly serious” interest in the sale, and the government expects to be in talks with at least two parties by the first quarter of next year, he said.


SriLankan Airlines is competing with Gulf carriers like Etihad Airways PJSC and Emirates Airline for customers in the local market, and years of losses have prompted the government to look for a buyer and offer to absorb all the company’s debt. In the latest attempt that started in 2016, at least eight parties showed interest in a sale. Those included US buyout firm Blackstone Group and TPG.

Emirates held 44 per cent of SriLankan Airlines until 2010, when the government bought the stake following the end of a 26-year civil war. The allure of buying into an airline in the tourism-dominated nation primarily lies in its proximity to India, the world’s fastest growing aviation market, where an emerging middle class is increasingly flying overseas for work and leisure.

Your Comment

அன்புள்ள வாசகர்களே, நீங்கள் தெரிவிக்கும் கருத்துகளுக்கு நிர்வாகம் எவ்விதத்திலும் பொறுப்பாகாது. கருத்துக்கள் தகுந்த தணிக்கைக்குப் பிறகே பதிவேற்றம் செய்யப்படுகின்றன. எனவே நாகரீகமான கருத்துக்களை மட்டுமே பதிவு செய்யுமாறு வாசகர்கள் கேட்டுக்கொள்ளபடுகின்றனர். முக்கியமான புலங்கள் குறிக்கப்பட்டுள்ளன *

Type Comments in Tamil language (Press Ctrl+g to toggle between English and Tamil)