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The Sri Lankan government announced that it will restructure SriLankan Airlines instead of selling a minority stake, following a lack of suitable bids from interested parties. Despite efforts to make the airline more attractive by absorbing some of its debt, the government found none of the proposals satisfactory.
Nimal Siripala de Silva, the Sri Lankan Minister of Ports, Shipping, and Aviation, confirmed on July 4 that the airline would not be sold to either national or foreign entities. He noted that regulations prevent selling more than 49% of SriLankan Airlines to foreign individuals or investors. De Silva mentioned minimal interest in purchasing a stake in the airline, with only six expressions of interest received.
The government had attempted to attract third-party investors by absorbing over $500 million of SriLankan Airlines' debt. Reports from local media outlets EconomyNext and Daily FT indicated that the Ministry of Finance, Economic Stabilization, and National Policies would absorb $512 million in debt. An additional $70 million in revenue from ground handling and catering divisions was expected to improve liquidity.
