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Asian Tribune is published by World Institute For Asian Studies|Powered by WIAS Vol. 12 No. 2957

Sri Lanka to manage its national air carrier from April

By Ruwan Weerakoon in Colombo

Colombo, 09 January, ( Sri Lanka government will take over the management of its national air-carrier from 1st of April.

Board Of Investment Chairman (BOI) Dammika Perera when speaking to Asian Tribune told that Sri Lanka Government which hold 51% controlling share of its national airlines SriLankan Air Lines has decided to take over the management effective from 1st of April, as the management contract with Emirates expires on march 31.

Sri Lannka made a decision to manage its airlines subsequent to a strained relationship with Dubai based Emirate over Sri Lanka Chief Executive Peter Hill who was a nominee of Emirates.

Emirates and Colombo were thought to have been discussing a five-year extension to the contract, but the government's decision to revoke the work permit of SriLankan chief executive Peter Hill, last month is believed to have caused a rift between the two parties.

Hill, who was appointed SriLankan CEO by Emirates, lost his work permit after he refused to accommodate the island's president, Mahinda Rajapakse and his entourage of 35 on a London-Colombo flight.

Subsequently, Emirates announced on Sunday it was ending its 10-year relationship with SriLankan after the island's government sought greater control over the carrier's day-to-day business.

The announcement has sparked a flurry of speculation over whether Emirates will sell its 43.6% stake in SriLankan, valued at around $150 million, and who will take over management of the airline.

A detail regarding the share sales and acquisitions remains speculative and Emirates is yet to announce it final decision on its 43 % shares in the Srilankan Airlines.

- Asian Tribune -

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