Tata Enterprises may invest in SriLankan Airlines
Tata Enterprises, a prominent Indian conglomerate that recently acquired Air India, is reportedly being considered as a potential investor in Sri Lankan Airlines, according to Indian media reports. The Sri Lankan government has set up a State-Owned Enterprise Restructuring Unit to facilitate the privatization or restructuring of the national carrier as part of its plan for economic recovery and fiscal consolidation.
Sri Lanka is considering divesting from various sectors, including airlines, hotels, and hospitals, to create investment opportunities for Indian investors. Reports suggest that Sri Lankan Airlines was highly profitable when it was previously privatized, with 40% of its shares sold to Emirates Airlines, which managed its operations.
Indian media reports suggest that Indian airlines could benefit from collaborating with Sri Lankan Airlines, as many of its flights are routed through India. The Chairman of Sri Lankan Airlines, Ashok Pathirage, believes that privatization could help the ailing national carrier, provided the right partner is found, and there are no protests or issues in the country.
The Ministry of Ports, Naval and Aviation Services has stated that the State-Owned Enterprise Restructuring Unit believes it is wise to divest SriLankan Airlines, SriLankan Catering, and Ground Handling at once to a single investor, instead of multiple investors. However, no final decision has been reached on the matter.