In recent media reports, Indian conglomerate Tata Sons has been mentioned as a potential investor in SriLankan Airlines (UL, Colombo International).
The owner of Air India, Vistara, Air India Express, and AirAsia India has long been rumoured to be interested in investing in Sri Lanka’s state-owned carrier.
The government intends to privatise several state-owned enterprises, including SriLankan Airlines. However, it has become something of a political football in Colombo, with various agendas at play.
Speaking at a recent government committee on public enterprises hearing, SriLankan Airlines Chairman Ashok Pathirage expressed support for privatisation as long as the right buyer could be found, while CEO Richard Nuttall stated that he was focused on replacing planes and rebuilding the fleet before considering privatisation.
Meanwhile, Sri Lanka’s Ports, Naval, and Aviation Services Ministry Secretary K.D.S. Ruwanchandra told a public enterprises hearing that the government agency in charge of selling SriLankan Airlines subsidiaries SriLankan Airlines Ground Handling and SriLankan Catering preferred to sell the two entities to a single buyer. The government hopes to raise approximately US $ 600 million by selling 49 percent stakes in both profitable entities, as previously reported in ch-aviation. That amount, however, would only cover about half of SriLankan Airlines’ current debt.