Sri Lankan Government Offers Emirates $55m to Buy Back SriLankan Stake

15 May 2010

COLOMBO ( Reuters ) – Sri Lanka has offered $55 million to buy back the 43.6 per cent stake Dubai’s Emirates airline holds in national carrier SriLankan Airlines, the island nation’s treasury secretary said on Friday.

Emirates, the Arab world’s largest

airline, had no immediate

comment, but earlier this week

had said it was willing to sell the

stake “at the right price.”

“Sri Lanka is going to buy it… $55

million is the price we have

indicated, ” P.B. Jayasundera,

secretary of the finance ministry

and the treasury, told Reuters in

an interview.

“The deal is almost done,”

Jayasundera said. “We are

looking for a strategic partner or

somebody from the government

to take that (the stake) and

maintain the commercial

character of SriLankan (Airlines). ”

He declined to say whether an

arm of the government would

take over the stake, or whether it

would be sold to an outside

partner.

The government will facilitate

the transfer “to Bank of Ceylon

or somebody who can basically

participate in a business, ”

Jayasundera said, referring to

the largest state-owned bank.

Source : Khaleej Times

Note that Emirates bought the SriLankan ( then Air Lanka ) stake in 1998, for $70 million. Emirates Airline President, Tim Clark, had previously stated that they will sell the 43.68% stake for around $150 million.

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