Strategic divisions of Sri Lankan Airlines are to be privatized with the aim of improving customer service, cut costs, grow digital sales, and improve productivity.
A cabinet memorandum will be presented shortly towards this end seeking approval to hand over Sri Lankan Airline catering services and SriLankan Ground Handling to a foreign company in partnership with a local firm, official sources confirmed.
Lycamobile company of Lyca Group, UK, owned by Sri Lankan-born successful entrepreneur Allirajah Subaskaran is believed to have been eyeing the Sri Lankan Airlines as well.
An agreement will be signed by the local company partnered with Lyca Group, UK soon , to take over Sri Lankan Airline catering services and SriLankan Ground Handling soon, a senior official of the air line said.
The catering division and the airport services division are making profits in millions of rupees while the airport services division earns a profit of US$ 100 million annually, he revealed.
SriLankan Airlines has already devised a new five-year strategic plan which focuses on establishing Colombo l as a connecting hub between Europe, Africa, the Middle East, Asia, and Australia.
The national carrier intends to diversify away from the point-to-point traffic to and from Sri Lanka, which today forms the bulk of its demand.
The plan also envisages unspecified fleet and network adjustments. SriLankan Airlines also intends to improve customer service, cut costs, grow digital sales, and improve productivity.
It also plans to increase the revenues of its subsidiaries SriLankan Cargo, SriLankan Engineering, and SriLankan Ground Handling.