Thursday, October 3, 2024 Sri Lanka’s new government delays decision on selling a stake in SriLankan Airlines, with no immediate plans for divestment and further discussions expected. The Chairman of Sri Lanka’s National People’s Power (NPP) Economic Council, Anil Jayantha, has clarified recent media reports about the government’s stance on selling a stake in SriLankan Airlines. Contrary to some reports, the new government has not made any final decisions regarding the airline’s future ownership, and no immediate action is planned.
Earlier in 2024, the previous administration under President Ranil Wickremesinghe had taken steps toward selling a stake in the struggling national carrier. After issuing a call for expressions of interest, the process was put on hold when no suitable buyers came forward. Wickremesinghe’s government then announced that alternative divestment strategies would be explored after the presidential election on September 21, 2024.
Following the election, Anura Kumara Dissanayake, leader of the left-leaning NPP, was elected as Sri Lanka’s new president, winning by a significant margin. President Dissanayake has committed to upholding the USD 2.9 billion International Monetary Fund (IMF) bailout agreement, which aims to stabilize the country’s economy.
However, he has expressed a desire to minimize the impact of austerity measures on the country’s most vulnerable populations and has generally voiced opposition to selling off state-owned as.