The Cabinet has approved the appointment of a special committee chaired by Presidential Senior Adviser on Digital Economy Dr. Hans Wijayasuriya to oversee the strategic review and restructuring of national carrier SriLankan Airlines, with the International Finance Corporation named as transaction adviser, the Government announced on Friday.
The named members are Presidential Senior Economic Adviser Duminda Hulangamuwa, finance and corporate strategy specialist Deshal de Mel and transactions and investment banking specialist Dumith Fernando. The Secretary to the Ministry of Finance or a designated representative, the Secretary to the Ministry of Transport, Highways and Urban Development or a nominee from the Civil Aviation Authority, and the Chairman of SriLankan Airlines complete the institutional members. Legal experts in corporate, aviation and public law, and an aviation industry specialist, are to be added.
The Government said a comprehensive strategic review of the carrier had been identified as an urgent priority, citing broader macroeconomic conditions and the need to reduce the long-term financial burden on the State. The committee will review strategic options, assess restructuring requirements, recommend the most suitable restructuring model, and provide oversight and support for implementation of the model selected by the Government. It will remain operational throughout the review and restructuring process or until formally dissolved.
The IFC, a member of the World Bank Group, has formally been appointed as the transaction adviser. The new committee replaces the ad-hoc structures that left the carrier without a confirmed restructuring chair through the SJB’s Rs.100 billion accountability demand and the recent search for a new CEO that had narrowed to four candidates. The Cabinet had earlier approved a Rs. 91 billion debt restructuring for the carrier in May.
Sources: NewsFirst; Newswire; EconomyNext.
