Indian firms “Keen on   picking stake in SriLankan Airlines”. 

Sri Lankan Airlines is attracting investors from various companies, including both aviation and non-aviation firms, for a stake in privatizing its national carrier, SriLankan Airlines. They’ve issued a request for qualification (RFQ) to attract potential investors. The SriLankan government, currently holds over 99% of the airline, plans to conclude the sale by next June. Companies from different countries, including India, are considering investing. Some reports mentioned in September that Tata Sons, the Adani Group, and Emirates as potential suitors, but Air India’s CEO  Campbell Wilson,  denied their involvement.

The SriLankan  airline have 23 Airbus aircraft and flies to 39 global destinations, with significant traffic between Sri Lanka and India. The air services agreement between Sri Lanka and India is quite liberal, granting Sri Lankan designated carriers unrestricted access to most Indian cities, including major metropolitan areas. This agreement includes fifth freedom traffic rights for connecting South Asian Association for Regional Cooperation (SAARC) countries. The air services agreement between the two countries allows for increased connectivity.

The Sri Lankan government is promoting the airline’s strengths, aiming to attract the potential of the rapidly growing Indian aviation market to attract investors. They believe that investment in SriLankan Airlines would provide access to India, the world’s third-largest domestic aviation market. 

In an effort to boost tourism, In October the Sri Lankan government recently waived visa fees for Indian citizens and other six  countries. India is a significant source of tourism for Sri Lanka, accounting for 20% of all tourist arrivals in 2023. The government envisions the development of a hub at Colombo airport to facilitate connections between India, Southeast Asia, and Australia.

The privatization of Sri Lankan Airlines is gaining attention from a range of potential investors, both in aviation and beyond, with an eye on the airline’s strategic location and growth prospects. The SriLankan Government sees it as an opportunity to tap into India’s growing aviation market and boost tourism, potentially making Sri Lanka a key connecting hub in the region.

WRITTEN BY :- MALLA GREESHMA , COLLEGE :- SRI PADMAVATI MAHILA VISWAVIDYALAYAM , BALLB ,9^TH SEMESTER , A LEGAL JOURNALISM INTERN AT LEGAL VIDHIYA,

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