SriLankan Airlines Chairman has issued a communique it’s employees saying the Airline is facing a risk of shutting down.
The Chairman Ajith Dias says the Airline is operationally cash flow deficient, and their costs exceed the income by a wide margin. The two state bank which are lenders of SLA are at risk due to this situation, the chairman noted.
Funding the loses of SLA past March 31, 2018 will be a “very hard call” – he added.
According to Ajith Dias, the government has “very little choice” and that it’s looking at the possibility of 3 solutions.
1) Restructure the company in such a way to attract an equity partner
2) Carry out the restructuring in a manner which the airline can manage it’s own affairs without government funding, if finding a partner fails.
3) Closure of the company, if both above options are unavailable.
According to the MEMO, a Ministerial committee headed by Prime minister Ranil Wickremesinghe will work closely with an experienced international consultant to start the restructuring process.
This committee will be assisted by a task force of officials.
The process was to begin on December 11 with a preliminary report being produced by the 20th. The memo states that the entire solution needs to be implemented on or before March 31, 2018.