The possible privatization of state-owned Sri Lankan Airlines has cleared a major hurdle as the government has now agreed to sell at least part of the company.

Under the supervision of the Minister of Finance, the Minister for Aviation and Maritime Affairs was commissioned to draw up a corresponding concept. The cabinet has decided that an official sales tender should then be launched. However, it has not yet been decided whether the group should be fully or only partially privatized. In any case, it is certain that they at least want to get investors on board.

The airline's management was recently open to possible privatization. But one can also imagine that some subsidiaries are sold in order to get fresh money into the coffers. The carrier is currently on a profit course, but has suffered significant losses in recent years due to the corona pandemic.

Sri Lankan Airlines was already a private company but was saved from bankruptcy by nationalization in 2008 after suffering significant losses. Critics argue that a privately owned airline would not pay off.