The International Monetary Fund (IMF) has insisted that debt-ridden national carrier SriLankan Airlines be restructured within this year in a manner that ultimately paves the way for it to stop being a burden on the State and become a profittable entity.
A Finance Ministry official acknowledged that earlier attempts to privatise SriLankan Airlines had been unsuccessful as no one wanted to take on the carrier and absorb its debt. The National People’s Power government meanwhile, had halted the earlier government’s plans to privatise SriLankan Airlines, instead opting to restructure the national airline while keeping it as a State-owned entity.
However, the IMF had made it clear that restructuring SriLankan Airlines within this year was absolutely necessary, the official added, observing that the carrier’s debts was also affecting the ratings of local banks. Given this situation, attempts to restructure the airline are proceeding urgently, he further revealed.
Source: Sunday Times
