SriLankan Airlines Divided: Chair, Minister Clash Over Privatization Plan

COLOMBO (News 1st); SriLankan Airlines Chairman Ashok Pathirage and Minister of Ports, Shipping and Aviation Nimal Siripala De Silva highlighted starkly contrasting views on the airline's path forward at a meeting on Monday (26).

The discussion saw a disagreement regarding ground handling. Minister De Silva advocated for immediate privatization of the service, citing shortcomings. Chairman Pathirage, while acknowledging areas for improvement, argued that the lack of aircraft, not ground handling, was the primary issue. He blamed lengthy government procurement procedures for hindering fleet acquisition.

De Silva justified his push for privatization by citing the airline's struggles and reports of potential bidders withdrawing their interest. While not inherently opposed to privatization, Pathirage emphasized the ongoing process and the lack of control the airline has in the decision.

De Silva revealed that the Treasury rejected his initial proposal for a three-segment privatization, opting for a combined sale of catering, ground handling, and the airline itself. He added that a final proposal is expected on March 5th, amidst uncertainty regarding potential buyers.