International Finance Corporation (IFC), a subsidiary of the World Bank is reportedly going to assist the Sri Lankan Finance Ministry in the divestment process of SriLankan Airlines along with its subsidiaries SriLankan Catering Limited and SriLankan Ground Handling Limited.
The Sri Lankan Government has called expressions of interest from advisors to assist with the sale of stakes in seven state owned enterprises (SOEs) that includes SriLankan Airlines.
“The government is in the process of implementing deep economic reforms" across its multiple State-Owned Enterprise Restructuring Unit (SRU). Such reforms are intended to enhance competition, productivity and efficiency across the economy,” reads the notice posted on the Finance Ministry’s website.
The notice further reads, “The divestitures will be carried out by the SRU in a transparent and credible manner following an EOI/RFP process which will be published in the local and international press.”
The Sri Lankan government hopes to raises around $500 million from the sale of SriLankan airline’s subsidiaries, the catering and the ground handling units. However, this will cover only a part of the debt while the remaining debt will be covered by the treasury, aviation minister Nimal Siripala De Silva clarified.
With the sale of SriLankan Airlines the government hopes to clear down part or all of the remaining debt, depending on weather the government divests 100% of the airline or a part of it.
Meanwhile, Sri Lanka’s Minister of Transport Bandula Gunawardana recently revealed that the buyer might be from Russia, while speaking to Russian agency RIA Novosti.