Connect with us

News

SriLankan Airlines ready to sell stake in its ownership

Published

on

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.”



Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

News

Chief Sanghanayaka of Sabaragamuwa Province felicitated

Published

on

By

The “Gauravabhinandana” ceremonial felicitation was held in honour of the Chief Sanghanayake of the Sabaragamuwa Province of the Malwathu Maha Vihara Chapter of the Maha Vihara tradition of the Siyamopali Maha Nikaya; former Pirivena Examiner; Rajakiya Pandith; holder of Master; Scholar of classical texts; recipient of the Kala Bhushana title; Vinaya Keerthi Sri Dhammdinna Saranapala; the Most Venerable Kaeligama Vijithananda Nayaka Thero on Wednesday [25th of February] at the auditorium of the Rathnapura District Secretariat

The event was organized under the patronage of the Anunayake of the Malwathu Chapter of the Siyamopali Maha Nikaya, Most Venerable Acharya Agga Maha Panditha Niyangoda Dharmakeerthi Sri Sangharakkhitha Vijithasiri Abhidhana Anunayake Thero.

The presentation of the symbolic casket to the Most Venerable Kaeligama Vijithananda Nayaka Thero took place with the participation of Prime Minister Dr. Harini Amarasuriya and the Governor of Sabaragamuwa Province, Ms. Champa Janaki Rajaratne.

Addressing the gathering, the Prime Minister stated:

“It is a privilege for me to participate in this felicitation ceremony held in appreciation of the religious and social service rendered by the Chief Sanghanayaka of the Sabaragamuwa Province, Most Venerable Kaeligama Vijithananda Nayaka Thera.

When we reflect on his life journey, it serves as a profound inspiration to us all. Having entered monastic life as a disciple of the Sabaragamuwa prelate, the late Most Venerable Kelle Sri Saranananda Thero, the Nayaka Thera has now rendered over five decades of distinguished service following higher ordination.

After obtaining a Bachelor of Arts degree from the Vidyodaya University, he devoted several decades as a Pirivena teacher and examiner, enlightening thousands of students. He has also authored numerous scholarly works. His classical literary contributions, especially for students of Pirivena education, are of exceptional value”.

The Prime Minister further recalled with gratitude the commitment shown by the Nayaka Thera, centred around the Ratnapura Mahawala Sri Dharmayathana, to uplift the spiritual and social well-being of the local community, and extended her wishes for good health and long life for the continuation of his invaluable service to the Buddha Sasana.

The occasion was also graced by the presence of Most Venerable Karagoda Uyangoda Maithreemurthi Thera, Supreme Mahanayaka of the Sri Lanka Amarapura Maha Sangha Sabha; the Anunayaka of the Sri Lanka Ramanna Maha Nikaya, Waleboda Gnanissara Thera; Lecturer of the University of Peradeniya and Deputy Registrar of the Malwathu Chapter, Panditha Mahawela Dhammakkhanda Rathanapala Thera; the Chief Sanghanayaka of Ratnapura and Uva Wellassa and former Vice-Chancellor of Uva Wellassa University, Bethgamuwa Dhammadinna Thera; along with members of the Maha Sangha. The occasion was also attended by the Minister of Buddhasasana, Religious and Cultural Affairs Sunil Senavi, Governor of Sabaragamuwa Province, Ms. Champa Janaki Rajaratne, Member of Parliament Shantha Padmakumara, former Members of Parliament A. A. Wijethunga and Janaka Wakkumbura, Ratnapura District Secretary Chinthana Udaya Nanayakkara, Basnayake Nilame of the Maha Saman Devalaya Ishan Sanka Mapitigama, Mayor of Ratnapura Indrajith Katugampala, and many other distinguished invitees.

[Prime Minister’s Media Division]

Continue Reading

News

Sajith raises fresh concerns over toxic pollutants emanating from burning of substandard coal

Published

on

Sajith

 Opposition and SJB Leader Sajith Premadasa yesterday raised serious concerns over the Government’s importation of substandard coal, warning that its use has resulted in inefficient electricity generation, increased equipment damage and significant financial losses to the State and consumers.

In a video statement, the Opposition Leader said the SJB had exposed details regarding the importation of inferior-quality coal, prompting what he described as an admission by Government representatives that the coal in question was of poor standard.

Premadasa charged that the continued use of such coal has reduced generation efficiency at the Norochcholai Power Station, while increasing the likelihood of damage to critical equipment.

He further claimed that ash content had risen sharply, from the accepted 11–15 percent range, to over 21 percent, doubling the volume of toxic pollutants generated. The disposal of the excess ash, he said, poses additional environmental risks.

The Opposition Leader also noted that a further 15 to 16 coal shipments are expected to arrive within the next two to three months. However, he alleged that the failure to procure high-quality coal has reduced megawatt output, necessitating greater reliance on fuel-powered plants to bridge the shortfall.

“This results in financial losses to the country, the Government, and, ultimately, to electricity consumers,” he said.

Premadasa cited Section 30 of the Electricity Act of 2009, maintaining that consumer tariffs can only be imposed, based on efficient electricity generation. He urged the Public Utilities Commission of Sri Lanka to safeguard the rights of the country’s 7.5 million electricity consumers, insisting that losses stemming from inefficient generation cannot lawfully be passed on to the public.

He further alleged that the Government’s promised “system change” had, instead, resulted in questionable coal procurement deals. The financial losses incurred through, what he termed, corrupt transactions, he argued, could have been channelled into essential public services, such as education, healthcare, poverty relief and support for entrepreneurs.

Premadasa called not for the appointment of a committee of experts, but for a full forensic audit into the transactions surrounding the coal imports.

He stressed that the SJB would continue to stand in defence of electricity consumers and asserted that the President and Cabinet must accept responsibility for the damage allegedly caused to the Norochcholai power plant, which, he described, as a national asset.

Continue Reading

News

Cyclone Ditwah relief halted over unresolved issues

Published

on

Grama Niladharis, Disaster Relief Service Officers, and Technical Officers have temporarily suspended Cyclone Ditwah-related relief operations, citing unresolved administrative and financial issues. The halt began yesterday (27).

The decision stems from the absence of a formal circular for relief assessment and the non-payment of promised allowances.

Upul Kumara, Chairman of the All Island Disaster Relief Services Officials’ Union, said there is still no proper system in place for delivering Cyclone Ditwah relief.

He added that trade unions, representing Grama Niladharis, who manage relief distribution, and Technical Officers, responsible for disaster damage assessments, had discussed continuing relief operations. Despite this, 95 days after the cyclone struck, the government has yet to implement the necessary mechanisms to ensure proper relief delivery.

“As a result, all parties involved have collectively decided to initiate this trade union action,” Kumara said.

He noted that discussions with the relevant secretaries had already taken place and formal demands submitted. “We are informing the President that we no longer require discussions with the secretaries. Our demands have been presented. This action is, therefore, necessary,” he added.

Kumara emphasised that all Grama Niladharis, Disaster Relief Service Officers, and Technical Officers, engaged in relief operations, will suspend Ditwah-related duties until proper directives are issued and allowances are paid.

Continue Reading

Trending