Business
Cash-strapped Treasury to absorb USD 510 million liabilities from debt-ridden SriLankan Airlines
By Sanath Nanayakkare
The bidding process for disposing of Sri Lankan Airlines has been postponed with a new programme aimed at reducing the debt-ridden airline’s debt pile by about half with the help of the cash-strapped Treasury.
Accordingly, the bidding process for divestiture of the SriLankan Airlines which was to be concluded yesterday has been extended by another 45 days.
Addressing a press conference in Colombo yesterday, Shipping and Aviation Minister Nimal Siripala de Silva said that President Ranil Wickremasinghe as finance minister has agreed to the proposals made by him to ease the debt burden on the Airline with the help of the Treasury to make it more attractive for prospective buyers including airlines and investors.
“IFC – a member of the World Bank Group which advises us on the restructuring of the Airline has told us that under the current debt strain, SriLankan would not lure the right kind of prospective buyers. So, we have decided to reduce its debt pile and make it a more attractive offer for investing,” he said.
“The President as finance minister agreed to get the Treasury to absorb USD 510 million worth of SriLankan Airline’s debt payable to Ceylon Petroleum Corporation, the Bank of Ceylon and the People’s Bank in the next six months. This amounts to half of the Airline’s total debt quantum. The Cabinet approval was given on Monday to select a suitable investor for SriLankan under these less-stressed financial conditions because it would then be a more conducive investment in the eyes of potential investors,” he said.
The minister, however, noted that the funds received by SriLankan from the Treasury would have to be repaid from the earnings of its profitable arms such as Ground Handling, Catering and Engineering.
“The Treasury will be providing about USD 60-70 million to the Airline in the next six months for engine repairs and related activities. We will ensure that Treasury funds thus given to the Airline would be recovered though the proposed mechanism because we can’t pass it on to the taxpayers like in the past,” he said.
“These moves have been taken not only to make SriLankan Airlines attractive to potential investors but also to safeguard the job security of 6,000 employees working for the Airline. We are confident that with the Airline’s debt halved, it would attract more bidders when bidding reopens.”
“Further, I have given directives to the Airline to give no one any new perks, salary hikes or unnecessary foreign tours in the next six months to consolidate its financial discipline. I think I will get the support of the employees and the trade unions in this exercise,” he said.
The Delegation of German Industry and Commerce in Sri Lanka (AHK Sri Lanka) proudly facilitated the first-ever Sri Lankan delegation’s participation at Drupa 2024, the world’s largest trade fair for the printing industry and technology. Held after an eight-year hiatus, Drupa 2024 was a landmark event, marking significant advancements and opportunities in the global printing industry.
AHK Sri Lanka played a pivotal role in organising and supporting the delegation, which comprised 17 members from the Sri Lanka Association for Printers (SLAP), representing eight companies from the commercial, newspaper, stationery printing, and packaging industries. This pioneering effort by AHK Sri Lanka not only showcased the diverse capabilities of Sri Lanka’s printing sector but also facilitated vital bilateral discussions with key stakeholders from the German printing industry.
Business
Unveiling Ayugiri: Browns Hotels & Resorts sets the stage for a new era in luxury Ayurveda Wellness
In a captivating reimagining of luxury wellness tourism, Browns Hotels & Resorts proudly unveiled the exquisite Ayugiri Ayurveda Wellness Resort Sigiriya. This momentous occasion, celebrated amidst a vibrant and serene grand opening on the 6th of June, heralds a new chapter in the Ayurveda wellness tourism landscape in Sri Lanka. Nestled amidst 54 acres of unspoiled natural splendour, Ayugiri features 22 exclusive suites and stands out as the only luxury Ayurveda wellness resort in the country offering plunge pools in every room, rendering it truly one-of-a-kind.
The grand opening of Ayugiri Ayurveda Wellness Resort was an enchanting event, where guests were captivated by the melodies of flutists and violinists resonating through Sigiriya’s lush landscapes. As traditional drummers and dancers infused the air with vibrant energy, Browns Hotels & Resorts’ CEO, Eksath Wijeratne, Kotaro Katsuki, Acting Ambassador for the Embassy of Japan and General Manager, Buwaneka Bandara, unveiled the resort’s new logo, marking a significant moment witnessed by distinguished guests from the French Embassy, Ayurveda and wellness enthusiasts along with officials from the Sigiriya area, LOLC Holdings and Browns Group.
“Our strategic expansion into wellness tourism with Ayugiri Ayurveda Wellness Resort Sigiriya symbolises a significant milestone for Browns Hotels & Resorts. Wellness tourism has consistently outperformed the overall tourism industry for over a decade, reflecting a growing global interest in travel that goes beyond leisure to offer rejuvenation and holistic well-being. By integrating the timeless wisdom of Ayurveda with modern luxury, we aim to set a new standard in luxury wellness tourism in Sri Lanka. Whether your goal is prevention, healing, or a deeper connection to inner harmony, Ayugiri offers a sanctuary for holistic well-being” stated Eksath Wijeratne.
Ayugiri encapsulates the essence of life, inspired by the lotus flower held by the graceful queens of the infamous Sigiriya frescoes. Just as the lotus emerges from the murky depths, untainted and serene,
Ayugiri invites guests on a journey of purity and rejuvenation, harmonised with a balance of mind, body and spirit, the essence of nature, echoes of culture and the wisdom of ancient Ayurvedic healing.
HNB General Insurance, one of Sri Lanka’s leading general insurance providers, has been honored as the Best General Bancassurance Provider in Sri Lanka 2024 by the prestigious Global Banking and Finance Review – UK.
The esteemed accolade underscores HNB General Insurance’s unwavering commitment to excellence and its outstanding performance in the field of bancassurance. Through dedication and hard work, the HNB General Insurance team has continuously endeavored to deliver innovative insurance solutions, cultivate strong relationships with banking partners, and provide unparalleled service to customers nationwide. This recognition is a testament to the team’s dedication and relentless pursuit of excellence in the bancassurance business.
“We are honored to receive this prestigious award, which reflects our team’s tireless efforts and dedication to delivering value-added insurance solutions and exceptional service through our bancassurance partnerships,” said Sithumina Jayasundara, CEO of HNB General Insurance. “This recognition reaffirms our position as a trusted insurance provider in Sri Lanka and motivates us to continue striving for excellence in serving our customers and communities.”
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