The Cabinet has agreed to offer a Government guarantee to the fledgling Sri Lankan Airlines to obtain a staggering US dollars 175 million-more than Rs 21.8 billion-from the Mashreq Bank in the United Arab Emirates (UAE) to pay its creditors.
This is in addition to a decision on February 13 this year by the Cabinet to invest in a five year Treasury Bond to the value of US dollars 125 million-Rs 14.2 billion- to SriLankan Airlines as equity funding. “The Bond will help strengthen the balance sheet of the airline and resolve the negative equity position which helps it to go for additional borrowings,” Civil Aviation Minister Priyankara Jayaratne told the Cabinet.
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