The TTG Asia website reports that Sri Lanka’s new government has decided to abandon plans to privatize SriLankan Airlines, according to the airline’s newly appointed chairman, Mr. Sarath Ganegoda.
Mr. Ganegoda stated that the airline would undergo necessary restructuring to enhance profitability. The previous administration had sought bids for the acquisition and management of the airline due to years of financial losses. Under that plan, the government would retain a 51% stake in the airline, while 49% was to be sold to investors.
Although six parties expressed interest in the deal, none met the qualifications to proceed to the next stage of negotiations.
Despite its financial challenges, including a debt of $1.2 billion, SriLankan Airlines recorded an operating profit for the period from April 2022 to March 2023. Mr. Ganegoda emphasized the airline’s critical role in supporting the nation’s tourism industry, noting that approximately 50% of the country’s visitors arrive via SriLankan Airlines.
With a target of 2.3 million tourists for 2024, Sri Lanka aims to increase this number to 3 million by 2030.
