Deadlines and deadlocks  keep SriLankan down

The International Monetary Fund (IMF) has placed a deadline of August 31 for the internal re-structuring of the virtually bankrupt national carrier SriLankan Airlines.

The idea behind the move is to cut down on colossal amounts of money going from state coffers to keep the airline flying. Prime Minister Ranil Wickremesinghe has directed that the matter be given high priority as the airline has still not been successful in securing foreign participation for a “Public-Private Partnership.” The work is now under way with help from consultants.

One of the much publicised offers for collaboration from two different airlines in a leading Asian country has turned out to be a non-starter. Sources familiar with the matter said that the offer had in fact come from an investment company. The company was later told that for its proposal to be considered, a written offer from the two airlines referred to should be made available. However, these sources said the company not successful in providing such a letter.

As a result, these sources said, a key player in the proposal had approached a Government leader and made an appeal. He wants the leader to make a personal request from his counterpart in the country where the airline is operating to persuade them to send a proposal. “That will not work. The Government will not negotiate business for another firm to enter into deals here,” these sources added.
The latest offer came as efforts by coalition leaders to work out a management deal with Emirates Airlines fell through.

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