https://sputnikglobe.com/20220829/sri-lanka-to-sell-stake-of-national-carrier-to-foreign-investors-amid-talks-on-imf-bailout-1100119006.html
Sri Lanka to Sell Stake of National Carrier to Foreign Investors Amid Talks on IMF Bailout
Sri Lanka to Sell Stake of National Carrier to Foreign Investors Amid Talks on IMF Bailout
Sputnik International
Sri Lanka owes over $51 billion to foreign lenders. The International Monetary Fund (IMF) has assessed Sri Lanka's public debt as unsustainable. 29.08.2022, Sputnik International
2022-08-29T14:45+0000
2022-08-29T14:45+0000
2022-10-19T18:49+0000
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Sri Lanka on Monday announced it would sell 49 percent of stake of its ailing national carrier to foreign investors as the debt of Sri Lankan Airlines reached $1.12 billion.Minister of Ports, Shipping and Aviation Nimal Siripala De Silva said that 49% shares in "Catering and Ground Handling" of Sri Lankan Airlines would be offered to foreign investors while 51 percent will be retained with the state.The money received from the restructuring of the airline would be used to repay the debt.The government has also indicated the state-electricity producer Ceylon Electricity Board could be privatized due to rising losses.The decision to cut government expenditure was made against the backdrop of the ongoing negotiations to reach a $3 billion bailout package with the International Monetary Fund.Last week, an IMF team arrived in the country to discuss the bailout package with senior government officials, including President Ranil Wickremesinghe. The IMF team has also discussed restructuring Sri Lanka's debt of about $29 billion.The Washington-based lender said that Sri Lanka's public debt is assessed as unsustainable.President Ranil Wickremesinghe, who took over the president post after Gotabaya Rajapaksa fled the nation amid a popular uprising, will present an interim budget on Tuesday. The president is expected to enhance the government's borrowing limit and cut unviable expenditure.The island nation with a population of 22 million is facing its worst economic crisis since 1948, with foreign exchange reserves plummeting to $300 million.
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Sri Lanka to Sell Stake of National Carrier to Foreign Investors Amid Talks on IMF Bailout
14:45 GMT 29.08.2022 (Updated: 18:49 GMT 19.10.2022) Sri Lanka owes over $51 billion to foreign lenders. The International Monetary Fund (IMF) has assessed Sri Lanka's public debt as unsustainable.
Sri Lanka on Monday announced it would sell 49 percent of stake of its ailing national carrier to foreign investors as the debt of Sri Lankan Airlines reached $1.12 billion.
Minister of Ports, Shipping and Aviation Nimal Siripala De Silva said that 49% shares in "Catering and Ground Handling" of Sri Lankan Airlines would be offered to foreign investors while 51 percent will be retained with the state.
The money received from the restructuring of the airline would be used to repay the debt.
The government has also indicated the state-electricity producer Ceylon Electricity Board could be privatized due to rising losses.
The decision to
cut government expenditure was made against the backdrop of the ongoing negotiations to reach a $3 billion bailout package with the International Monetary Fund.
Last week, an IMF team arrived in the country to discuss the bailout package with senior government officials, including President Ranil Wickremesinghe. The IMF team has also discussed restructuring Sri Lanka's debt of about $29 billion.
The Washington-based lender said that Sri Lanka's
public debt is assessed as unsustainable.President Ranil Wickremesinghe, who took over the president post after Gotabaya Rajapaksa fled the nation amid a popular uprising, will present an interim budget on Tuesday. The president is expected to enhance the government's borrowing limit and cut unviable expenditure.
The island nation with a population of 22 million is facing its worst economic crisis since 1948, with foreign exchange reserves plummeting to $300 million.
