Credit Suisse to keep UL flying

Published : 9:14 am  December 27, 2017 | No comments so far |  |  (155) reads | 

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Long-term loan of USD 150 mn; short-term loan of USD 50 mn

 

By Sandun A. Jayasekera

While expressing hope that national carrier SriLankan Airlines would not be liquidated, State Minister Lakshman Yapa Abeywardana said the Government had successfully negotiated a long-term credit package of US$ 150 million and a short-term loan facility of US$ 50 million with the Credit Suisse Bank on behalf of the airline.  

 

MB_1The Minister added that the loan package of US$ 200 million (Rs. 32 billion) is expected to strengthen the Government’s guarantee for the ongoing discussions with several investors to run SriLankan as a Public-Private Partnership (PPP).  


He said the Government did not intend to liquidate the national carrier under any circumstances but the colossal US$ 702 million (Rs. 108 billion) acts as an obstacle to the successful conclusion of the negotiations.  

 

“The Government has obtained this loan package from the Swiss Bank and the Cabinet has decided to absorb the entire liability of SriLankan Airlines running to US$ 702 million, which I hope would lead to a successful conclusion of negotiations with prospective investors,” the Minister said.   He said the SLFP or the UPFA has not taken a decision to join any other political party to form an administration in any local Government body after the polls, though there was an agreement with the UNP to work with the Unity Government until the end of December.  


The Minister said it could be either the UNP or the SLPP, but the SLFP Central Committee would come to a final decision after the polls.  


He said the crossover of a few leading politicians including a prominent trade union leader, which would further strengthen the SLFP’s position, is expected between December 28 and January 10, 2018.  

 

  • The SLFP or the UPFA has not taken a decision to join any other political party to form an administration in any local Government body 
  • The Cabinet has decided to absorb the entire liability of SriLankan Airlines running to US$ 702 million, 
  • The colossal US$ 702 million (Rs. 108 billion) acts as an obstacle to the successful conclusion of the negotiations