Govt. to manage SriLankan

Shirajiv Sirimane

The management of the SriLankan airlines will be taken over by the government with effect from March 31, 2007. The agreement that was signed between Emirates and the then government would end on March 31.

Chairman Board of Investment (BoI) Dhammika Perera told 'Daily News' that the government has now decided to take over the total management of the airline, since the State controls 51 per cent.

He said that a representative from Emirates would still remain as a member of the Board of the new management.

Emirates, took over the management of SriLankan airlines with a 42 per cent stake after signing an agreement with the then government in 1998. The Dubai based airline company later purchased more shares from the public and increased their share to 43.6 per cent.

The stake was given to Emirates in 1998 for US 80 million.

Emirates President, Tim Clark has indicated that they are keen in selling part or all of shares.

He valued the present Emirates' stake in SriLankan Airlines for USD M 150.

"Emirates will retain its 43.6 per cent equity in the company for the time-being, and will continue to have a Board till the Dubai management takes a decision," he said.