SriLankan Airlines debt of S$510m to be taken over by govt

Sri Lanka’s central government will take over about $510 million in debt from the balance sheet of state-run SriLankan Airlines, Aviation Minister Nimal Siripala de Silva said.

The cabinet approved the proposal, he said.

SriLankan has a sovereign guaranteed bond and other debt including to Ceylon Petroleum Corporation and state banks.

President Ranil Wickremesinghe has also proposed to provide 60 to 70 million US dollars over the next six months to ease liquidity problems at the airline, he said. The money will go for engine repairs and other needs, he said.

He said that any money earned from the sale of SriLankan Airlines will go the Treasury.

The deadline to submit expressions of interest for SriLankan Airlines has also been extended to April 2024 from March 5.