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Government to take over the management of SriLankan
9.1.2008

Government will be taking over the management of the national carrier SriLankan with effect from March 31, 2007, according to the Chairman of the Board of Investment (BOI), Dhammika Perera.

Perera said that the Government, which hold 51% controlling share of its national airline, has decided to take over the management whilst a representative from Emirates would still remain as a member of the Board of the new management. The agreement that was signed between Emirates and the then government expires on March 31.

Emirates, took over the management of SriLankan airlines with a 42 per cent stake after signing an agreement with the then government in 1998. The Dubai based airline company later purchased more shares from the public and increased their share to 43.6 per cent. The stake was given to Emirates in 1998 for US 80 million.

Emirates President, Tim Clark has indicated that they are keen in selling part or all of shares. He valued the present Emirates' stake in SriLankan Airlines for USD 150m.

"Emirates will retain its 43.6 per cent equity in the company for the time-being, and will continue to have a Board till the Dubai management takes a decision," he said.

Courtesy - Government Information