SriLankan, Mihin aim to be best in Asia

by Ranil WIJAYAPALA

The Government has shown its commitment not only for the continuity but also the expansion and sustenance of SriLankan Airlines and Mihin Airlines, in achieving its national objectives as it earmarks the development of the tourism industry and the creation of a regional hub in Sri Lanka in its vision for future prosperity, Chairman SriLankan Airlines Nishantha Wickremasinghe said.

Addressing media personnel in Negombo last week, the SriLankan Airlines Chairman said SriLankan and Mihin operate amidst many challenges with the goal to be the best in Asia.

He said with the five-year business plan initiated and implemented by SriLankan and Mihin with re-capitalisation by the Government with equity of US$ 500 million over a five-year period, they will be in a position to enhance their profitability and strengthen the net assets in the near future.

Wickremasinghe said the five-year business plan developed by the company and validated by international aviation consultants identifies the fleet expansion and modernisation program as a key requirement of the airline to maintain a competitive advantage in the market.

Accordingly, the Government has offered to provide guarantees to enable the company to obtain a syndicate facility, a borrowing facility of US$ 175 million from Mashreq Bank of the United Arab Emirates, he said.

In line with the Government decision to re-capitalise the company, the Government issued private Treasury Bonds to the value of US$ 125 million to the company as equity fund ng planning.

He said SriLankan has already commenced a fleet modernisation program which will be completed hopefully by the end of this year. Accordingly, all front seats will be flat based while all other seats are also being refurbished. New entertainment systems have also been installed.

"This is something we did not have three years ago. We did all this upto now with our own money", he said.