Business
Cash-strapped Treasury to absorb USD 510 million liabilities from debt-ridden SriLankan Airlines
By Sanath Nanayakkare
The bidding process for disposing of Sri Lankan Airlines has been postponed with a new programme aimed at reducing the debt-ridden airline’s debt pile by about half with the help of the cash-strapped Treasury.
Accordingly, the bidding process for divestiture of the SriLankan Airlines which was to be concluded yesterday has been extended by another 45 days.
Addressing a press conference in Colombo yesterday, Shipping and Aviation Minister Nimal Siripala de Silva said that President Ranil Wickremasinghe as finance minister has agreed to the proposals made by him to ease the debt burden on the Airline with the help of the Treasury to make it more attractive for prospective buyers including airlines and investors.
“IFC – a member of the World Bank Group which advises us on the restructuring of the Airline has told us that under the current debt strain, SriLankan would not lure the right kind of prospective buyers. So, we have decided to reduce its debt pile and make it a more attractive offer for investing,” he said.
“The President as finance minister agreed to get the Treasury to absorb USD 510 million worth of SriLankan Airline’s debt payable to Ceylon Petroleum Corporation, the Bank of Ceylon and the People’s Bank in the next six months. This amounts to half of the Airline’s total debt quantum. The Cabinet approval was given on Monday to select a suitable investor for SriLankan under these less-stressed financial conditions because it would then be a more conducive investment in the eyes of potential investors,” he said.
The minister, however, noted that the funds received by SriLankan from the Treasury would have to be repaid from the earnings of its profitable arms such as Ground Handling, Catering and Engineering.
“The Treasury will be providing about USD 60-70 million to the Airline in the next six months for engine repairs and related activities. We will ensure that Treasury funds thus given to the Airline would be recovered though the proposed mechanism because we can’t pass it on to the taxpayers like in the past,” he said.
“These moves have been taken not only to make SriLankan Airlines attractive to potential investors but also to safeguard the job security of 6,000 employees working for the Airline. We are confident that with the Airline’s debt halved, it would attract more bidders when bidding reopens.”
“Further, I have given directives to the Airline to give no one any new perks, salary hikes or unnecessary foreign tours in the next six months to consolidate its financial discipline. I think I will get the support of the employees and the trade unions in this exercise,” he said.
Business
Cabinet approves submission of the Annual Economic Analysis of the Central Bank of Sri Lanka for the year 2024 to the Parliament
The Cabinet of Ministers has approved the proposal forwarded by the President in his office as the Minister of Finance, Planning and Economic Development to submit the Report on the Annual Economic Analysis of the Central Bank of Sri Lanka for the year 2024 to the Parliament.
As per section 80 (3) of the Central Bank of Sri Lanka Act No. 16 of 2023, the Minister in – charge of the subject of Finance shall submit a report on the economic situation which prevailed within the particular financial year, within four months after completion of each financial year. Accordingly, the report in relation to the financial review of the Central Bank of Sri Lanka for the year 2024 has been submitted to the President. The report has envisaged macro economic trends of Sri Lanka, situation of the financial system, as well as the major developments and a review of the policies of Central Bank of Sri Lanka.
[DGI]
Gigalingua Lanka, a premier German language institute, officially launched in Colombo with a ribbon-cutting ceremony attended by distinguished guests, including Dr. Felix Neumann, German ambassador to Sri Lanka. This marks a significant milestone for Sri Lankan professionals, especially nurses, looking to expand their careers in Germany’s thriving healthcare sector.
In collaboration with its strategic partner Global Care Solutions (Pvt) Ltd – a renowned company in the foreign recruitment industry – Gigalingua Lanka offers a unique pathway for Sri Lankan nurses and apprentices to master the German language and pursue rewarding career opportunities in Germany.
Dr. Felix Neumann, the Chief Guest at the event, expressed his support for the initiative, emphasizing the importance of language education as a bridge to global career prospects. In his speech, Dr. Neumann noted, “German language is not only a means of communication, it is a gateway to global career opportunities.” He commended Gigalingua Lanka for providing valuable opportunities for Sri Lankans and addressing the critical demand for skilled workers, especially in the nursing sector in Germany.
Gigalingua Lanka is the first private institute in Sri Lanka to offer comprehensive German language training up to the B2 level, and conduct TELC exam. The institution also provides language training for apprentices, allowing them to undertake the Apprenticeship Program and contribute to the growing labor market in Germany. The collaboration between Gigalingua Lanka and Global Care Solutions is designed to meet Germany’s growing need for skilled workers, particularly in the healthcare sector.
The event was attended by a number of prominent figures, including Dr. Felix Neumann , Arthur Senanayake (chairman of IWS Holdings), Eran Wickramaratne – former MP, Chandra Schaffter – ( Founder of Janashakthi Insurance ), Dhammika Attygalle (Director Upali Group of Companies and President Automobile Association of Ceylon) Former Wing Commander Buwaneka Abeysuriya (Ex- chairman Janatha Estates Development Board).
Chairman of Global Care Solutions, Thomas Michael Kriwat, who is also chairman of the Mercmarine Group of Companies in Germany, highlighted the significance of the new training center. He said, “We are bringing world-class German occupational language training to Colombo, offering a structured, career-focused pathway for Sri Lankan professionals. By introducing TELC (The European Language Certificates) as an officially certified German language test authority, we are increasing accessibility for students seeking internationally recognized qualifications.”
At the thanksgiving speech, Dr. Rajan Sara, Managing Director of Global Care Solutions and Director of Gigalingua Lanka, outlined the critical need for foreign nurses in Germany. “Germany is facing a significant shortage of nurses, estimated to need an additional 150,000 by 2025. This is exacerbated by an aging population and increasing healthcare demands. Over 47,000 vacancies in the healthcare sector remain unfilled, making it an ideal time for Sri Lankan nurses to seize this opportunity,” Dr. Sara explained. (Gigalingua Lanka)
In keeping with its vision to consistently evolve and address accelerated business growth needs, Brown & Company PLC recently unveiled its new state-of-the-art manufacturing and warehouse facility in Katunayake. Strategically located within minutes of the Bandaranaike International Airport and the nation’s rapidly evolving highway network, the space is positioned to significantly enhance Browns’ logistical capabilities. The hub will enable seamless access to key markets across the island, further solidifying the Company’s principal role in a cross-section of industries.
The inaugural event of the Browns Group Industrial Park was attended by Ishara Nanayakkara, Chairman, Brown & Company PLC and Deputy Chairman, LOLC Holdings PLC and Kapila Jayawardene, Group Managing Director/CEO, LOLC Holdings PLC along with key officials from the Browns and LOLC Group.
“Sri Lanka’s Economic Revival – Reflection on the Journey from Crisis to Recovery” by Mahinda Siriwardana presented to the President
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