COLOMBO: Sri Lanka’s cabinet has approved a proposal to absorb SriLankan Airlines’ outstanding debt of US$510 million by the government, a minister said on Tuesday, reported Xinhua.
Minister of Ports, Shipping and Aviation Nimal Siripala de Silva told the media that the cabinet approval was also given to allocate funds to maintain services of the national carrier for another six months.
The Sri Lankan government has called for bids from interested parties for the divestiture of the state-owned national carrier. The minister said the deadline for submission of bids for SriLankan Airlines has been extended by 45 days.
Local media reported earlier that SriLankan Airlines’ total debt amounted to US$1.2 billion, and the government intended to retain 51 per cent of the airline’s shares. -Bernama
