Treasury will have to bear part of SriLankan debt even after restructuring: Minister

• The total debt of the SriLankan was  USD 1.2Bn
• We will be able to pay off a considerable amount of the  SriLankan debt by restructuring it

By Ajith Siriwardana   

The Treasury would have to bear a part of the debt burden  of the SriLankan Airlines even after it was restructured, Ports,  Shipping and Aviation Services Minister Nimal Siripala De Silva said  yesterday.   

He told Parliament that the total debt of the SriLankan was  USD 1.2 billion and that they were expecting to raise about USD 500  million by handing over the ground handling services and SriLankan  Catering was also of some value.   

“We will be able to pay off a considerable amount of the  SriLankan debt by restructuring it. We will be able to raise some USD  500 million by handing over the ground handling services. SriLankan  catering is also of some value. The rest of the debt will have to be  borne by the Treasury,” he said.   

The Minister said restructuring process was underway and  that the Financial Advisory group Lazard was working with international  guidance to prepare the expression of interest so that Sri Lanka could  get maximum benefits.   
The Minister said his first priority was to ensure job security of the SriLankan employees after the restructuring process.