Air Lanka privatization

Wed, 04 Feb 1998 | Source: AFP

COLOMBO (AFP): Sri Lanka yesterday announced it was entering into talks with the Dubai-based Emirates airline to sell 40 percent of its national carrier, Air Lanka, under a privatization plan.

The privatization authority here said it will hold negotiations exclusively with Emirates on the sale of Air Lanka after evaluating proposals from seven companies but gave no time- frame for concluding a deal.

Sri Lanka hopes to retain a 51-percent stake in Air Lanka so that the airline will enjoy "national carrier" status and qualify for concessions offered bilaterally. Nine percent of shares are to be given to employees.

AirLanka is currently reeling under huge debt which has affected modernization plans.

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