The Sri Lankan government has successfully negotiated a USD200 million funding facility with Credit Suisse for ailing national carrier SriLankan Airlines (UL, Colombo International).
State Minister Lakshman Yapa Abeywardana told The Daily Mirror this week that the funding entailed a long-term credit facility of USD150 million and a short-term loan of USD50 million.
The extra capital is expected to strengthen Prime Minister Ranil Wickremesinghe's hand during the latest round of talks with prospective strategic partners.
Following a failed first attempt at luring in a partner earlier this year, government has attempted to sweeten the SriLankan Airlines package by absorbing USD702 million worth of its legacy debts.
The move has, however, been accompanied by an announcement by President Maithripala Sirisena that a Presidential Commission will be appointed to investigate allegations of fraud at both SriLankan Airlines and defunct budget carrier Mihin Lanka (Colombo International) during the first week of January. Six SriLankan Airlines board members, including Chairman Ajith Dias, have since tendered their resignation letters to the Prime Minister's office although it is unknown as to whether they have been accepted.
