Government tight-lipped over Mihin Lanka closure [June 12 2016]

The Government yesterday was tight-lipped on speculation in airline industry circles that Sri Lanka’s loss-ridden budget airline Mihin Lanka is to wind up. Public Enterprise Development Minister Eran Wickramaratne however, refuted rumours that the government has taken any decision to liquidate the company.

“We have not taken any decision to wind up anything,” he said when contacted by the Sunday Observer.

Industry sources indicated speculation, including questions being raised by some Mihin employees, that the airline would be shut down. Founded in October 2006, the airline has a cadre of over 300 and a fleet size of four aircraft.

The Minister said there was a re-structuring program currently taking place at the Sri Lankan Airlines and the boards of Mihin Lanka and the Srilankan airlines will decide as to how they will operate in the future, as a single unit or separately.

“We are currently discussing to bring in a partner to both manage and invest in Srilankan,” he said. There was a proposal by the Government to merge Mihin Lanka with the Srilankan Airlines in early 2015 to reduce losses and increase productivity.

Srilankan Airlines Chairman Ajith Dias also denied that there was a Board decision to disband Mihin Lanka or absorb it into the national carrier. He said if there was any such decision it has to come from the Government.