SriLankan Airlines among state enterprises to be revived
View(s):The government plans to revive and redevelop state enterprises including national carrier Sri Lankan Airlines, Ceylon Petroleum Corporation, Ceylon Electricity Board with foreign participation as the concept of state monopoly has become obsolete in the world today, according to Deputy Minister of Finance and Planning Sarath Amunugama.
In an interview with Business Times at his ministry office in Colombo this week, he noted that discussions are now underway to transform Sri Lankan Airlines and the CPC to profit-making ventures than be a burden to the country.
A full-scale analysis is being carried out to identify the present situation of these enterprises, he said.
Meanwhile out going BOC chairman Gamini Wickremasinghe said the state owned banking giant Bank of Ceylon’s (BOC’s) buy over of a major stake owned by Emirates in Sri Lankan Airlines for US$ 53 million has not brought any returns on this investment for over two years.
The deal was carried out in July 2010, and the BOC is yet to receive dividends, he added.
Sri Lankan Airlines has so far not declared any dividends as it is running at a massive loss.
Mr. Wickremasinghe noted that the bank cannot sell its 43.6 per cent stake as no one will buy it due to the airline’s poor financial performances.
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