Sri Lanka’s national carrier SriLankan Airlines -once a profit making ambassador to the country, has fallen into a debt ridden institution in trouble.
It was on the verge of being restructured and board directors coming forward to resign from their positions.
However, the troubled Airline has now been given a brand new lifeline.
How? – the Cabinet has approved a (US)$175 million loan from ‘Credit Suisse’.
According to the Ministry of Public Enterprise Development, the loan will be used to ease the ‘crisis situation’ at the National Carrier.
The subject Minister also confirmed the President’s decision to appoint a Presidential Commission to probe internal issues which lead to the financial crisis of Mihin Air and SriLankan Airlines.
According to Minister Lakshman Yapa Abeywardena, the phenomenal losses -around Rs. 40 Billion- is mainly due to mismanagement.