BOC, People’s Bank to bailout SriLankan Airlines with Rs. 13.5 Bn

July, 12, 2018

Sri Lanka’s two largest government owned banks – the Bank of Ceylon (BOC) and People’s Bank will extend financial assistance to country’s national carrier Sri Lankan Airlines with whopping Rs. 13.5 billion, by issuing the Letters of Comfort soon, reports outline.

Reports highlight that Public Enterprise Development Minister Lakshman Kiriella had recently submitted the Cabinet memorandum in this regard, whilst Finance and Media Minister Mangala Samaraweera, in his observation on the Cabinet paper, had stressed the need to restructure the national carrier or to find a new investor for the development of SriLankan Airlines.

According to reports the bank interests, accrued over a period of time, accounts for a bulk of the total losses of the SriLankan airlines. Reports reveal that a top-level committee, appointed by the government to look at the financial situation of the airline, has recommended the fleet and route rationalization along the laying off of the staff.