Sri Lanka Equity Forum
Dear Reader,

Registration with the Sri Lanka Equity Forum would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
Sri Lanka Equity Forum

Discussion Forum for Stock Market Investors in Sri Lanka

සිංහල පරිවර්තනය
Submit Post
Submit Post

Latest topics

» We Provider Verifiable BG,SBLC.MT103,MT760
by kimsungnyon02 Today at 10:34 pm

» Project finance/Bg,Sblc specifically for lease
by kimsungnyon02 Today at 9:58 pm

» Genuine bank instrument for lease/sale,such as BG, SBLC, MTN
by kimsungnyon02 Today at 9:53 pm

» BG / SBLC / LC / DLC / MTN ETC AVAILABLE FOR LEASE
by kimsungnyon02 Today at 9:51 pm

» We Currently Have Providers of BG/SBLC and Other Financial Instruments
by kimsungnyon02 Today at 9:49 pm

» Financial Offer/Business Funding Through Bank Instruments
by kimsungnyon02 Today at 9:47 pm

» CSE THIS WEEK
by ruwan326 Today at 9:03 pm

» Financial Reports Q-4 2018
by ruwan326 Today at 8:54 pm

» FOREIGN NEWS
by ruwan326 Today at 8:52 pm

» Daily Foreign Transactions
by ruwan326 Today at 8:51 pm

» Performance of the Market
by ruwan326 Today at 8:49 pm

» CROSSINGS TODAY
by ruwan326 Today at 8:21 pm

» Daily Stock Market Update
by Insights Equity Today at 5:29 pm

» Sri Lanka's EPF loses most from Laugfs, Dockyard, Carsons; gains from banks
by charithaa Today at 12:49 pm

» Sri Lanka's Anilana Hotels says to get more cash from Singapore’s SOMAP
by charithaa Today at 12:47 pm

» Tea industry’s performance in 2018 and prospects for 2019
by ruwan326 Today at 12:44 pm

» Marriet Hotel Going to Sell their 100% Stake Keep On Eye EAST
by NCC Today at 12:44 pm

» EAST EPF Deal Finalized Keep On Eye
by NCC Today at 10:32 am

» HOPL, TPL, KFP, TSML, MGT results analysis
by arjunaupendra Today at 6:03 am

» LOFC AND UBC WILL RUN FROM TOMORROW
by fireshelter Yesterday at 10:54 pm

» DIVIDEND ANNOUNCEMENTS- JAN/MARCH 2019
by ruwan326 Yesterday at 9:07 pm

» We are direct provider for BG/SBLC specifically for lease/sale
by rsileaseconsult Yesterday at 8:11 pm

» Plantation sector
by ruwan326 Yesterday at 7:12 pm

» LDEV - MADU - BALA - WATCH
by kalu351 Yesterday at 4:56 pm

» BFN WILL RUN AFTER WEDNESDAY ONLY IT WILL REMAIN AT 14/40 - 15 LEVELS THIS WEEK AND START THH RUN
by kalu351 Yesterday at 11:36 am

» කොහොමත් BFN 19-20 වෙනකම් යන එක ඉතින් ස්තිරයි
by kalu351 Yesterday at 11:36 am

» LDEV SAGA WITH MOUNTING SELLING PRESSURE
by kalu351 Yesterday at 11:30 am

» ##FUN TOONS###
by ruwan326 Yesterday at 11:28 am

» PLAYERS PICK OF THE DAY
by ruwan326 Yesterday at 10:53 am

» Fundermentels singnles STRONG BUY Without speculation there is no active stock market in the world Every thing is speculative You all will see next feww days how \ LDEV UBC BFN LOFC BIL RIL CFT ECL KOTA MAL X MAL N REEF Perform
by Harry82 Yesterday at 9:19 am

You are not connected. Please login or register

Sri Lanka Equity Forum » Stock Market Talk » Harry J-led Japanese consortium makes UL offer in writing

Harry J-led Japanese consortium makes UL offer in writing

Go down  Message [Page 1 of 1]

DS Wijesinghe


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
Daily FT, 17th August 2027. The Japanese consortium led by business tycoon Harry Jayawardena has this week given a written offer on SriLankan Airlines to the Gover-nment, which is trying to revive the national carrier on a public-private partnership (PPP) basis.

The Daily FT learns the offer in writing is to own 49% stake and manage SriLankan Airlines. The written offer has been handed over to Prime Minister Ranil Wickremesinghe. The development follows the completion of a preliminary fact-finding mission by the Japanese consortium representatives recently. Apart from Jayawardena’s tourism-rich Aitken Spence, the Japanese consortium comprises All Nippon Airways (ANA) as the airline partner as well as a leading light aircraft manufacturer and shipbuilder.

ANA is the largest airline in Japan. Contrary to previous reports, the Japan Airlines (JAL) is not part of the consortium.

The restructuring of SriLankan Airlines is also linked to the IMF’s $ 1.5 billion Extended Fund Facility.

According to the IMF’s latest country report on Sri Lanka released last week, SriLankan Airlines has undertaken route and fleet optimisation, and now aims at securing a strategic partner and resolving any fiscal contributions to its liabilities.

“During the ongoing negotiation, the airline’s financial performance will be monitored quarterly,” the IMF report added.

Yesterday the Daily FT also quoted Public Enterprise Development Minister Kabir Hashim as saying that the restructuring of SriLankan Airlines will be led by the Cabinet in order to expedite the program.

According to the Minister, the Board of Directors of SriLankan Airlines, which was tasked with the restructuring program over the last two years, has not been able to deliver results, prompting the Government to take charge of matters.

“The last two years the board has been driving its own agenda in restructuring the entity but has not been successful. Now the effort will be monitored by the Cabinet. The Ministry will lead the restructuring,” Hashim told Daily FT.

The Ministry is also focusing on how to optimise different areas of businesses under SriLankan Airlines, focusing on ground handling, catering, engineering and the aviation academy which are already profitable. However, the Minister highlighted that the entities were not running at an optimum level and the restructuring would focus on maximising profits and leveraging advantages.

The Ministry has not set a deadline for the restructuring process, but the Minister said that the process should have happened “yesterday”.

“The airline is in very bad shape. It is bleeding funds and even the IMF has said that it has to be restructured as soon as possible,” Hashim added.

During an interview with the Daily FT (http://www.ft.lk/article/631248/Fresh-restructuring-plan-for-SriLankan) last month, SriLankan Airlines CEO Capt. Suren Ratwatte said the airline would have achieved break-even in FY17 if not for an estimated $ 45 million hit from the partial closure of the Bandaranaike International Airport earlier this year, which resulted in the cancellation of over 600 flights. The airline also faced few others issues.

Parallel to the PPP initiative, the SriLankan board had submitted a revival plan to the Government with several conditions, saying if those were met the national carrier can be revived with the current status quo of 100% State ownership.

In FY17, SriLankan boosted its revenue over the previous year and the latest restructuring plan focuses on several issues including the price of aviation fuel, aircraft leases, debt servicing cost, no adverse new taxation and the realignment of human resources. The

Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum