COLOMBO, March 31 (APP/AFP): Sri Lanka is seeking foreign assistance
to rescue its loss-making national carrier, a minister said Thursday, after the government announced the airline was unable to pay back nearly $1 billion in debt.
The country cannot afford to bear SriLankan Airlines’ losses of 128
billion Sri Lankan rupees ($872 million) on top of its massive debt, International Trade Minister Sujeewa Senasinghe told reporters in Colombo.
The airline owes at least $933 million but the government last week
said the true figure could be much higher.
“We want to restructure SriLankan (Airlines) with either direct
foreign capital or through a management agreement with a foreign airline,” Senasinghe said.
He added that he hopes the process will be completed within “two to
three months”.
Official sources said Colombo was in talks with a Middle Eastern
carrier to form an agreement that would see the airline hand over control of its management to a foreign carrier.
A previous management deal with Emirates was ended in 2008 by the
former Sri Lankan government following a personal disagreement between the flag carrier and then-president Mahinda Rajapakse.
The airline had refused to bump fare-paying business-class passengers
to economy class and give their seats to members of Rajapakse’s family, who were returning from London.