The Sri Lankan government has asked for Expressions of Interest (EOI) from any third parties interested in forming a strategic partnership with its carriers SriLankan Airlines and Mihin Lanka, the Ch-Aviation reported.
The deadline for proposals is August 24 with each submission to be accompanied by a non-refundable deposit of USD5,000. BNP Paribas and KPMG have been appointed financial and transaction advisors.
In April, the International Trade Minister said government would like to restructure SriLankan Airlines with either direct foreign capital or through a management agreement with a foreign airline. In the interests of expediting a deal for its mainline carrier, the Sri Lankan government has pledged to absorb all liabilities currently owned by SriLankan Airlines which, as of December 31, 2015, are said to stand at LKR461 billion (USD3.15 billion).
While the search for a strategic partner is underway, the government has, as an interim measure, said it will recapitalize both airlines to the tune of USD201 million, enough to last them through to the end of October.
-Agencies
