No satisfactory bidder for SriLankan Airlines, Govt. looks for new strategy

• Govt. to Govt. deal is an option

By Kelum Bandara

The government scrapped plans to privatize the national carrier because no bidder came on satisfactory terms to buy it, a top source said.

The Cabinet decided on July 9 to terminate the current bidding process with regard to the divestiture of SriLankan Airlines, the State Owned Enterprises Restructuring Unit said.

Asked for the reason, the source said that no satisfactory buyer was found, and therefore the government would look for a different model to divest the cash-strapped national carrier.

Earlier, the government shortlisted three potential buyers, including Malaysia’s Air Asia.

Ports, Shipping and Aviation Minister Nimal Siripala de Silva said earlier that the Cabinet agreed to take over debts of US $ 510 million belonging to SriLankan Airlines.

The airline, which is in the process of being privatised, reported a profit of Rs.1.124 billion for the nine months ended December 31, 2023, the 2023 budget position report showed.

For the full financial year that ended March 31, 2023, 2022, 2021 and 2020, the carrier recorded a loss of Rs.73.26 billion, Rs.165.89 billion, Rs.45.23 billion and Rs.47.19 billion respectively.