Defunct Mihin Lanka owes billions to state banks
View(s):Mihin Lanka, a low-cost carrier initiated by the Mahinda Rajapaksa administration in 2007, has suffered huge losses and thus drained public funds.
The airline had closed operations in 2016, but the winding-up process remains incomplete, while no step was taken to recover billions of rupees in loans given by two state banks.
According to an October 2024 pre-election budgetary report from the Finance Ministry, Mihin Lanka owes Rs.3.17 billion each to Bank of Ceylon and People’s Bank.
The Treasury has issued Letters of Comfort for these loans, the principal amounts still remain unpaid, although partial interest was paid.
It is reported that, in addition to rupee loans, Mihin Lanka had also borrowed in USD, further increasing its debt.
While both state banks have called for its repayment, the fact that the airline’s debts remain unresolved underscores deep-seated problems in tackling the financial mismanagement tied to its operations.
Hitad.lk has you covered with quality used or brand new cars for sale that are budget friendly yet reliable! Now is the time to sell your old ride for something more attractive to today's modern automotive market demands. Browse through our selection of affordable options now on Hitad.lk before deciding on what will work best for you!