The Sri Lankan government is actively seeking bids for the divestiture of the financially troubled national carrier, SriLankan Airlines, according to Minister of Ports, Shipping & Aviation, Nimal Siripala De Silva. Invitations to Tenders (ITTs) have been widely circulated through local and international media channels and websites.
The divestiture process will consist of two stages: RFQ (Request for Qualification) and RFP (Request for Proposals for the Proposed Transaction). The Finance Ministry, in its RFQ notice, highlighted the government’s ongoing efforts to restructure and reduce the airline’s existing debts and liabilities as stated in its latest financial statements.
Prospective bidders are invited to submit their prequalification applications between 9 a.m. and 2 p.m. on December 05. The selection of prequalified bidders is scheduled for December 19.
Addressing recent rumors about the government’s intention to sell the national carrier by the end of 2024, Minister De Silva clarified during an interview that the government plans to retain a 51% stake in SriLankan Airlines and sell the remaining 49%. He emphasized that operating the airline as a joint venture is the proposed solution due to the airline’s substantial debt, which currently amounts to USD 1.2 billion.
This move aligns with Sri Lanka’s broader economic strategy aimed at reducing losses incurred by state-owned enterprises, supported by a USD 2.9 billion Extended Fund Facility (EFF) from the International Monetary Fund (IMF). In late October, Sri Lanka achieved a staff-level agreement on economic policies, marking progress in its 48-month EFF-supported program. The country’s economy is gradually recovering from last year’s crisis, which was characterized by historically low reserves, soaring inflation, and currency depreciation.
