Sri Lanka’s Minister of Ports, Shipping and Aviation, Nimal Siripala de Silva says that within the next few weeks, the management of the financially-burdened Mattala International Airport will soon be assigned to a joint venture between an Indian and Russian firm. He also said that the development of the Kankesanthurai Port is developing with support that amounts to USD 69 million from India.Minister De Silva further confirmed that the national carrier, Sri Lankan Airlines, will undergo restructuring instead of being sold. He also highlighted that according to present regulations, only up to 49% of the airline’s shares can be transferred to another entity, yet no appropriate investor has expressed interest so far.
Recently at the press briefing titled Collective Path to a Stable Country at the Presidential Media Centre (PMC) Minister Siripala De Silva further said that President Ranil Wickremesinghe addressed Parliament, outlining the ongoing debt restructuring crucial for the country’s economic progress. Despite political skepticism from the opposition, he highlighted that the message conveyed was extremely positive for the country’s interests.
Furthermore, the International Monetary Fund is highly involved in the restructuring process based strictly on legal frameworks, regulations, and objective criteria, without regard to personal considerations. Sajith Premadasa noted examples such as Argentina, Ecuador, and Ghana, which have successfully negotiated a 25% reduction in commercial loans, distinct from bilateral debts. Negotiations to restructure commercial debt within Sri Lanka are continuing, with evolving criteria influenced by IMF assessments of each country’s economic resilience. It is worried that following narrow political objectives without recognizing internationally accepted realities would be inappropriate in this situation.
President Ranil Wickremesinghe has introduced the first step towards rebuilding the country from its recent challenges. The next important step is to safeguard and push it forward, crucial in preventing a regression to conditions of two years ago. This year’s budget allocates funds for provincial councils, Pradeshiya Sabha, government departments, and also for social security benefits like “Aswesuma”. These activities are not being conducted in anticipation of the elections.
Furthermore, Sri Lankan Airlines should be addressed here. Our method involves restructuring the airline rather than selling it outright. Under Sri Lankan law, only 49% of Sri Lankan Airlines’ shares can be transferred to another entity. However, there has been a slight global interest in this prospect, with only six people saying about their interest, but none of them were appropriate. Even if we were to extend this opportunity to a Sri Lankan entrepreneur, their capabilities would need to be proven.
Next week the Japan International Cooperation Agency (JICA) is set to discuss the resumption of their projects, marking another advantage of debt restructuring. Despite interest from Chinese firms in the airport project, contractual obligations with Japan stipulate those contracts should be awarded to Japanese companies. The management of the financially burdened Mattala Airport will be entrusted soon to a joint venture between Russia and India. Development at the Kankesanthurai port is progressing with support amounting to USD 69 million from India. During a recent visit to Sri Lanka, Indian Foreign Minister Dr. S. Jaishankar confirmed plans to soon start a ferry service between Sri Lanka and India.
