The Sri Lankan government is eyeing a private partner for SriLankan Airlines (UL, Colombo International) and held talks with Qatar to this effect, Daily News has reported. The authorities have, however, firmly rejected the idea of privatising the airline.
"I as the minister can assure that we have no intention of selling it off. But we need a good international partner to work with us. They will do the management but Sri Lanka will still hold shares in it," Sri Lankan Minister of Public Enterprises Development Kabir Hashim has said.
Hashim has met the Emir of Qatar recently and held "very successful" negotiations with the Qatari side. He added that Sri Lanka is currently awaiting a response from the Gulf state.
SriLankan Airlines is currently fully owned by the government. The government has recently successfully negotiated a USD200 million funding facility with Credit Suisse for the financially struggling carrier. The funding entailed a long-term credit facility of USD150 million and a short-term loan of USD50 million and comes on top of the government's decision to absorb USD702 million worth of the carrier's legacy debts earlier in 2017.
The country's flag carrier is expected to get new board within days after the previous management tendered resignation letters among the allegations of widespread fraud during the last few years.
According to the ch-aviation capacity module, Qatar Airways currently operates 37 weekly departures from Colombo International to Doha Hamad International, while SriLankan Airlines flies 11x weekly on this route.
