Govt purchases 43 percent Emirates shares:

Sri Lankan fully national

Dharma SRI ABEYRATNE

The Government has become the sole owner of SriLankan Airlines as it has purchased all shares of the Emirates recently.

The Government has purchased 43 percent of shares from Emirates and its share ownership has increased to 94.6 percent. The balance 5.4 percent shares belong to the SriLankan Airlines employees.

Under the Emirates management, the SriLankan Airlines had been running at a loss. According to statistics of SriLankan Airlines, the loss in the 2008/2009 financial year was Rs 10 billion while the loss in the 2009/2010 financial year was Rs seven billion.

SriLankan now operates 13 flights to many destinations. The number of aircraft will be increased in the future. An airbus will be purchased within next three months, Ports and Aviation Deputy Ministers Rohitha Abeygunawardena and Dayasrita Tissera said.

As a Government owned public institute, SriLankan Airlines has to be converted to a profit-earning venture than be a burden to the country. A full-scale analysis is being carried out to identify the present situation. However, within a short period the institute will be made a profit-earning venture, the Deputy Ministers added.

Shares of the SriLankan Airlines were sold to Emirates Airlines based in Dubai, UAE in 1998 for US $ 70 million and the airline’s management was also handed over to the Emirates. At that time it was known as Airlanka but the stake bought the Emirates was valued at more than double the amount US $ 150 million at the end of the 10 years by the Emirates.

The PA Government at the time under the privatization policy lost all control over the National carrier and the UPFA Government attempted to gain some control but under the agreement with Emirates the entire management were by its Manager Peter Hill. The Government’s policy of non-privatization of public enterprises formulated by President Mahinda Rajapaksa enabled the Government to buy back the shares sold to Emirates after negotiations over some time.