State-run SriLankan Airlines will get 20,000 million rupees from tax payer funds to repay old debt and interest, President Anura Kumara Dissanayake said, presenting a budget for 2025.
Attempts by previous administrations to sell the airline has failed due to no takers, he said.
“Though funds are set aside to repay debt, there is will be no more funds for day-to-day operations,” President Dissanayake said.
The government will sign agreements with banks which have funded Sri Lankan and give 10 billion rupees for principle repayment and 10 billion for interest.
“The Airline would be fully responsible for ensuring operating profitability once these legacy debt service costs are settled by the Government,” the budget speech said.
“A new medium term strategic plan is being devised by the company towards this end.”
