NPP Govt. abandons plan to privatize SriLankan Airlines
Posted on September 30th, 2024
Courtesy The Daily Mirror
* Says it should remain with state for tourism promotion
* Plans for new management improvement
Colombo, September 30 (Daily Mirror) – The National People’s Power (NPP) government led by President Anura Kumara Dissanayake is to abandon initial plans by the previous rule to sell off or divest the cash-strapped SriLankan Airlines, an official said.
The previous government initially planned the sale process of the national carrier through the State-Owned Enterprises Restructuring Unit . After that the former Cabinet said it abandoned the sale process and decided to look at an alternate model to divest the airline.
However, the Chairman of the NPP Economic Council Prof. Anil Jayantha said the government believes that the national career should remain with the state given its significance for the development of tourism. He said the airline would not be sold off or divested as a result.
He said a new model for the improvement of its management would be considered instead.
The previous Cabinet agreed to take over debts of US $ 510 million debts of the national carrier in a move to attract a private investor. It originally decided to sell at least 51 per cent of the state-owned carrier.