Sri Lanka’s SriLankan Airlines to Undergo Restructuring Amid Global Models of Debt Reduction

Sri Lanka's Minister of Aviation, Nimal Siripala de Silva, confirmed that the loss-making SriLankan Airlines will undergo restructuring rather than being sold. The government retains a 51% share despite minimal interest from bidders. IMF is overseeing the restructuring. Negotiations on commercial debt restructuring continue amid IMF assessments.

Sri Lanka's Aviation Minister, Nimal Siripala de Silva, announced on Wednesday that the struggling SriLankan Airlines would undergo restructuring instead of an outright sale. Despite attempts to divest shares, bidders have shown minimal interest, compelling the government to retain its 51% shareholding.

In March, the government extended the Expression of Interest (EoI) deadline to April 22, with final bids accepted until the end of August. Out of the few bidders, none met the required criteria to take over the national carrier.

IMF plays a pivotal role in this restructuring process under its USD 2.9 billion bailout program. Discussions to restructure commercial debt continue, guided by IMF criteria, amid varying economic resilience across countries.

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