KMPG to assist NSB in SriLankan Airlines restructure
View(s):In the quest to find a strategic partner for SriLankan Airlines which has become a heavy financial burden to the country, the government has selected audit firm KMPG to expedite the re-orientation process, officials said. KMPG will assist the National Savings Bank (NSB) the lead manager appointed by the cabinet, in finding an international investment bank to handle the restructure exercise. The audit firm will decide on recruiting necessary experts to obtain professional support on various aspects of re-orientation of the Sri Lankan Airlines expeditiously. The Cabinet Committee on Economic Management (CCEM) has directed the authorities to conduct valuations and put out the Request for Proposals (RFP) to select a suitable investor for the airline by July 1.
In order to avoid possible delays, a suitable time frame has been be set for investors to submit proposals and strictly adhere to the same, a senior government official said. An international investment bank with aviation expertise had to be selected, as “there is no local party with airline expertise”, he said adding that documents for RFPs would be issued with the assistance of the investment bank. He said the government will have to write off the carrier’s carried forward debt and it will also need to address the issue of 7,000+ employees. SriLankan Airline’s employee to aircraft ratio with 21 aircraft is one of the highest in the world with around 340 employees per aircraft.