Consolidating its hold over national carrier Sri Lankan Airlines, the Island government has bought back the entire 43.6 per cent stake it sold to the Emirates Airlines 10 years ago.
“All shares of the Sri Lankan Airlines sold to the Emirates have been acquired,” Sri Lankan Airlines Chairman Nishantha Wickramasinghe said, according The Economic Times.
The shares were sold to Emirates 10 years ago. Though management of the Sri Lankan Airlines was also handed over to the Emirates earlier, it was reabsorbed two years ago on a decision made by President Mahinda Rajapaksa.
After successfully holding talks on the President’s directive, Sri Lankan Airways has been able to acquire 43.6 per cent stake belonging to Emirates, the official website said.
Emirates had bought its stake for 70 million dollars in 1998 in line with the privatization of the airline, which was then known as Air Lanka, media reports said.
Although the Sri Lanka government retained 51 per cent stake, Emirates was given management control of the airline for a 10-year period.
When the period ended in 2008, Emirates valued its holding at around 150 million dollars.
Sri Lankan posted a loss of 10 billion rupees (87 million dollars) in the year ended March, hurt by falling tourist arrivals and the global recession. It is expected to turn around this year, following a surge in tourist flow.
In January 2008, Emirates announced that it will not renew its management contract with Sri Lanka’s national carriers after March (that year).
