The Cabinet of Ministers by its decision dated 04th March 2024 has approved the transfer of the following liabilities of Sri Lankan Airlines to the Government of Sri Lanka (GoSL):
1. USD 105 million of Treasury guaranteed debt due to Bank of Ceylon
2. LKR 12.9 billion of Treasury guaranteed debt due to Bank of Ceylon
3. USD 105 million of Treasury guaranteed debt due to People’s Bank
4. LKR 18.5 billion of Treasury guaranteed debt due to People’s Bank
Consequent to the above, the only component of significant term borrowing that remains in the books of Sri Lankan Airlines relates to a USD 175 million, 7%, 5-year internaƟonal bond issued in 2019. This bond is also backed by asovereign guarantee and is due for seƩlement in June 2024.
Further, the Cabinet of Ministers has also decided that in the event of a ruling in favor of Sri Lankan Airlines with respect to the arbitration case filed by it against Airbus SE, steps will be taken to transfer proceeds arising from same to the GoSL