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SriLankan Airlines ready to sell stake in its ownership

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by Sanath Nanayakkare

SriLankan Airlines (SLA) would soon announce the sale of an ownership stake subject to Cabinet approval in order to reduce its huge financial stress, Aviation Minister Nimal Siripala de Silva said, in Colombo, yesterday.

The Minister said negotiations with potential investors would be conducted to safeguard the rights of current employees of the airline.

“Today, there is a lot of discussion in the country about the loss-making national carrier and the reforms it should undergo. SLA’s debt payable to an international sovereign bond (ISB) on a government guarantee is USD 175 million. A loan, taken from Bank of Ceylon, mortgaging shares of SriLankan Catering, is USD 80 million. Debt payable to BOC and People’s Bank is USD 386 million. Arrears amount due to CPC, Aviation Services, etc., are USD 325 million. Arrears due for leases amounts to USD 80 million and SLA’s total debt is USD 1,126 million – more than one billion USD.

“SLA doesn’t have the financial capacity to repay these debts as the Airline was severely affected in the past few years and also because of the economic crisis the government itself is embroiled in. The government can’t help out SLA anymore. So, restructuring of SriLankan Airlines, and obtaining capital investments, is critically vital and if such capital infusion does not happen, SLA will certainly collapse and the company will have to be closed down which will end up creating a social distress as 6,370 local and foreign employees are working for the national carrier.

“They are employed in areas of administration, cabin crew, aircraft maintenance, engineers, etc. They could lose employment in such an event. So, it is the responsibility of the government to safeguard the employees, without creating the environment for retrenchment, and also keep the national carrier flying.

“SriLankan was making profits when it was operating as a joint venture with Emirates in 1998, and it was not a burden to the government back then. In the new collaboration we envisage, we will make strategic decisions. The profit-making Ground Handling Division, which is currently undertaken by SLA, is to be continued and administered as a separate unit. Our landing rights, in 26 destinations, which is an invisible asset, will also be retained. We will keep 49% stake of the profit-making Catering Division and offer potential investors the balance shares with a negotiable share of its management.”

“If the restructuring could be completed successfully, foreign debt of USD 175 million, and the bank overdraft obtained from BOC of USD 80 million, could be repaid, as priority payments.

Further, USD 80 million arrears, due for aircraft leases, could be paid and then there won’t be any foreign debt to be paid.”

“It is also significant to note that if USD 466 million, owed to BOC and People’s Bank, could be paid, the said banks will be strong institutions to support the national economy. And when USD 322 million, the arrears payments to CPC is settled, CPC will also be a financially viable institution.

“Therefore, we believe that SriLankan Airlines, its debtors and its employees could only be protected through this restructuring process.”



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War-linked power crunch pushes Lanka to four-day week

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(AFP ) Millions of Sri Lankans enjoyed a government-ordered extra day off on Wednesday as the island nation battles an energy crisis triggered by the Middle East war.

Rail and bus stations were largely deserted as most state institutions, schools and universities shifted to a four-day working week.

“I am really enjoying the mid-week break because it is a fully paid holiday,” said housing ministry official Prarthana Perera, 40.

Her office, like many government departments in Battaramulla — the capital’s main administrative hub — was closed.

Banks operated on shorter hours, while many private firms introduced work-from-home arrangements, industry bodies said, urging members to help curb energy use.

Sri Lanka has already raised fuel prices by a third since the United States and Israel began bombing Iran, triggering retaliatory attacks that have disrupted global energy supplies.

About half of Sri Lanka’s electricity is generated by coal and diesel.

The cabinet has set a target of cutting electricity consumption by 25 percent, ordering street lamps switched off and asking civil servants to use table fans instead of power-hungry air conditioners.

Shipping executive Varuna Perera welcomed the day off but was uncertain of its impact.

“It will not be effective in the long term,” Perera said. “But the government will have a breather for a couple of weeks, to save some energy.”

Environmental lawyer Ravindranath Dabare was more sceptical, arguing the move would have limited impact as those needing government services would have to travel on other days.

“We can’t close hospitals… the doctors and health officials can’t work from home,” Dabare said.

The influential Chamber of Commerce said it had urged members to follow government guidelines or adopt remote work where possible, if

“business continuity can be effectively maintained”.

And Sri Lanka’s leading technology firm WSO2 made working from home mandatory for its 500 employees on Tuesdays and Thursdays.

“This is our way of contributing to the national cause,” WSO2 spokeswoman Zaithoon Bin-Ahamed told AFP.

Media Minister Nalinda Jayatissa said the government had yet to assess the impact of the energy-saving measures, but expected broad compliance.

Sri Lanka has been running coal and diesel power plants at full capacity to meet electricity demand.

President Anura Kumara Dissanayake urged electric vehicle owners not to charge their cars overnight, as they would add a surge to an already strained grid.

He asked motorists instead to plug in during the day, when excess solar power is available.

Officials said the country’s diesel stocks are sufficient to last until mid-May, while petrol could last a week longer.

The government is seeking oil supplies from Russia and hopes to tap Iran for crude oil, Jayatissa said.

Political commentator Kusal Perera said the crisis also presented scope to boost productivity across the state sector.

“They must use this opportunity to have a national dialogue on improving productivity,” he told AFP. “We have to address the inefficiency in the public sector.”

By Amal JAYASINGHE

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Lanka to swelter through April and May, Met Dept warns

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Sri Lanka is set to experience continued hot weather conditions until May, the Department of Meteorology has warned.

Additional Director General of Meteorology Ajith Wijemanna said the current heatwave is expected to ease only slightly once the southwest monsoon sets in toward the latter part of May.

Wijemanna explained that the island is currently in the first inter-monsoon period, characterised by low wind speeds and shifting wind directions, which contribute to rising temperatures. Reduced cloud cover and the sun’s direct position over the country are causing increased heating of land and sea, generating heat waves and warmer atmospheric conditions.

He cautioned that the hottest period of the day will be between 11:00 a.m. and 4:00 p.m., urging the public to limit outdoor activities during these hours.

Authorities also advised drinking plenty of water, wearing light-colored clothing, and avoiding prolonged exposure to direct sunlight, particularly for children and the elderly.The Meteorology Department further noted that rainfall may remain limited in the coming months, with drier conditions possible due to climate variability.

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Pathfinder Foundation launches Proposal for a National Security Strategy for Sri Lanka

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The Pathfinder Foundation launched a proposal for a National Security Strategy for Sri Lanka—2026, emphasising the urgent need for a comprehensive and state-led national security framework.

The proposed strategy contends that an effective National Security Strategy (NSS) must be based on a robust National Security Policy, which provides the long-term framework for protecting the country’s sovereignty, stability, and development in an increasingly uncertain global environment. The Pathfinder Foundation’s initiative, developed through consultations with academics, retired military officers, legal experts, and policy specialists, seeks to stimulate national discussion and support the formulation of an official state policy. The launch event was attended by those involved in preparing this proposal, heads of local think tanks, and media representatives.

Chairman of the Pathfinder Foundation, Amb. (Retd.) Bernard Goonetilleke, in his presentation of the report, emphasised that many major and middle powers, including the United States, China, the Russian Federation, the United Kingdom, Germany, Sweden, and Japan, have developed formal national security strategies. He pointed out that several South Asian and Southeast Asian countries, including India, Pakistan, Bangladesh, Nepal, Malaysia, Thailand, and Singapore, also rely on NSS, whereas Sri Lanka still lacks a single, officially adopted National Security Policy (NSP) or a National Security Strategy to guide long-term strategic planning.

The report highlights key strategic priorities across several sectors, including good governance, internal security, cybersecurity, energy and food security, health security, human capital development, and environmental protection. It also employs the internationally recognised DIME framework (Diplomacy, Information, Military, and Economy) to guide the coordinated use of national power in advancing Sri Lanka’s interests. Among its main institutional recommendations are establishing a fully legislated National Security Council, creating a National Security Secretariat, and officially appointing a National Security Advisor to coordinate policy and implementation across the government.

 The full text of the report is available https://pathfinderfoundation.org/publications, and your comments a/ welcome via pm@pathfinderfoundation.org

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