LNP – Government open to all options for SriLankan, including privatisation

The government is currently exploring all potential avenues to determine the most effective strategy for restructuring the debt-laden national carrier, SriLankan Airlines, suggesting that options like privatisation or Public-Private Partnerships (PPPs) remain under consideration.

Deputy Minister of Finance and Planning Dr. Harshana Suriyapperuma shared that an expert committee is diligently studying the optimal course of action to restructure the financially strained national airline, adhering to government guidelines.

“We are assessing what the best course of action will be. We are looking at restructuring. Therefore, the options range widely, including setting up a fund for assets, privatisation, changing management, or even amalgamation. We believe in exploring all alternatives. We will take the best possible action, as I mentioned, and we will await the committee’s recommendations,” he said at the Invest Sri Lanka Forum yesterday.

He clarified that the government does not have a predetermined bias towards any specific option.

“We do not have any pre-determined stance, so we will approach this carefully,” he added.

When questioned about a timeline for the restructuring process, Dr. Suriyapperuma acknowledged that providing a specific timeframe is challenging. However, he confirmed that the Committee has been given a deadline, though he declined to disclose it at this time.

In October 2024, the new government, upon assuming office, initially abandoned plans to privatise the airline, opting instead for internal restructuring measures aimed at improving profitability. However, this decision has reportedly come under pressure from the International Monetary Fund (IMF) recently.Â

(NF)