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AirAsia and FitsAir among bidders for Sri Lanka’s national carrier

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By: Staff Writer

April 23, Colombo (LNW): Malaysian budget carrier AirAsia is among six bidders for the divestititure of state-run Sri Lankan Airlines in the request for qualification (RfQ) process extended for four times on the request of the International Finance Corporation (IFC), the transaction advisor on the privatization, the finance ministry announced.   

Last year, when the government decided to sell at least 51% of the state-owned carrier, the initial RfQ deadline was December 5, 2023. This was later extended to January 9, then to February 6, then March 5, and April 22 2024.

This was to facilitate the transfer of select Dollar and Rupee debt to the Treasury which was done in March 2024.

Selection of pre-qualified bidders is now extended to May from March and bid submission deadline from May to August and issuance of Letter of Intent from end June to August and Cabinet approval on definite agreement and its signing from June to end September 2024.

AirAsia Consulting has submitted a request for qualification from potential investors for the acquisition of shares in SriLankan Airlines Limited, a statement released by Sri Lanka’s finance ministry said.

FitsAir, Sri Lanka’s privately-owned low-cost airline, has also submitted a RfQ for the acquisition of shares in SriLankan Airlines.

The other front liner was the Hayleys PLC whose controlling shareholder and Co-Chairman Dhammika Perera billioneir businemen of Sri Lanka

The document also named Dharshaan Elite Investment Holding (Pvt) Ltd, Sherisha Technologies Private Limited, and Treasure Republic Guardians Limited as the other bidders.

Sri Lanka’s Aviation Minister Nimal Siripala De Silva says the Sri Lankan Cabinet has recently agreed to take over debts of USD510 million belonging to SriLankan Airlines (UL, Colombo International).

It will also provide USD60-70 million in working capital for the flag carrier over the next six months.

He added that managing the national carrier as a joint venture is the solution as SriLankan was in total debt up to US$ 1.8 billion

Sri Lankan Chairman Ashok Pathirage disclosed that the airline earns over Rs. 330 billion turnover and with the acquiring of more aircraft this can be further increased, he added.

Economic expert Professor Wasantha Athukorale of the Peradeniya University said SriLankan Airlines has recorded losses due to inefficiency and weak administration of politicised top management who were incompetent in making the airline profitable.

During the previously completed fiscal year 2022/2023, the airline generated a passenger and cargo revenue of $ 994 million and an operating profit of US$53 million after recording losses during the past few years.

The operating profit at group level was $104 million. The group‚ however‚ incurred financing costs of $101 million, resulting in a profit of $ 3 million.

Sri Lanka Original Narrative Summary: 23/04

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  1. The Presidential Secretariat responds to concerns about rice quality at the Veyangoda warehouse, ensuring only rice approved by a health expert committee will be used for school meals: addresses allegations from the Public Health Inspectors’ Union, highlighting rigorous quality checks with endorsements from expert committees and analytical reports: instructs health sector teams to re-inspect and strategise the use of rice stocks by May 1: stresses the role of health officials and School Nutrition Committees in ensuring food safety and compliance with international standards: The reassurance came after a thorough inspection by diverse health sector representatives, confirming rice suitability.
  2. SLPP Chief Organiser Minister Prasanna Ranatunga says he still has no knowledge of any presidential candidate to be put forward by the Party: adds no such decision has yet been taken by the SLPP: suggests that he is no ‘SLPP Leader’ and a decision regarding candidacy may be taken at a future polit-bureau meeting.
  3. The National People’s Power (NPP) responds to the Samagi Jana Balawegaya’s (SJB) proposition of having a debate between the two opposition parties on which course of action would the JVP-led alliance take to resolve the economic crisis under an NPP-rule: asserts a debate between their leaders, Anura Kumara Dissanayake and Sajith Premadasa: sends a letter offering several dates (May 7, 9, 13, or 14) for the debate and emphasises the importance of setting a clear date to avoid confusion.
  4. The ‘Sri Ramayan Trails’ project launched in Colombo, aiming to boost tourism by showcasing nine significant sites from the epic Ramayana: Led by His Holiness Swami Govind Dev Giri Maharaj, the initiative seeks to deepen cultural ties between India and Sri Lanka: Using advanced technology like AI, AR, and VR, the project offers an immersive experience for visitors. Notable dignitaries attended the launch, highlighting its significance.
  5. The Meteorology Department warns of further increase of heat index up to ‘caution level’ in most parts of the island, despite the recurrence of showers: advises the public to stay hydrated and take breaks in the shade as often as possible, check up on the elderly and the sick, never leave children unattended, limit strenuous outdoor activities, find shade and stay hydrated, wear lightweight and white or light-coloured clothing.
  6. The Central Bank identifies eight more entities involved in prohibited pyramid schemes, warning the public against participating in such schemes as they are punishable offenses: These entities are Beecoin App/Sunbird Foundation, Fast Win (Pvt) Ltd, Fruugo Oline App/Fruugo Oline (Pvt) Ltd, Genesis Business School/Era Miracle (Pvt) Ltd, Isimaga International (Pvt) Ltd, Ledger Block, Qnet/Questnet and Ride to Three Freedom (Pvt) Ltd.: reaffirms its commitment to protecting consumers and maintaining the integrity of the financial system by cracking down on illicit financial activities.
  7. The Census and Statistics Department reports a drop in the Y-o-Year inflation rate to 2.5% in March 2024 from 5.1% in February: Food group inflation remains at 5.0%, while non-food group inflation decreases to 0.7%: Notable price decreases were observed in categories like housing and clothing, while increases were seen in alcoholic beverages and restaurants: Core inflation rose to 3.4%, suggesting underlying inflationary pressures: Analysts emphasise the need for robust economic policies to address living costs despite signs of stability.
  8. H.M.K.W. Bandara, the General Manager of Railways, tragically passes away this morning (23) after succumbing to a sudden and unexpected illness.
  9. The Sri Lanka Army clarifies that scheduling the ‘Fox Hill Super Cross’ race on April 21st, coinciding with the Easter Attacks anniversary, was unintentional: Amid criticism, the Army stated the date selection was not deliberate and the event’s resumption after four years was due to public demand: emphasises no involvement in an after-party and reiterates their immediate race cancellation in 2019 after the attacks.
  10. Afghanistan ‘A’ cricket team arrives today (23) for a series against Sri Lanka ‘A’, featuring five one-day games and one four-day game: Sri Lanka ‘A’ squad, led by Sahan Arachchige, awaits ministerial approval: Avishka Gunawardena coaches Sri Lanka ‘A’, while his former assistant takes on a role with the national team.

Presidential Secretariat ensures safety of rice stocks amid allegations, calls for thorough inspection

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April 23, Colombo (LNW): The Presidential Secretariat has responded to allegations regarding the quality of rice stocks stored at the Veyangoda warehouse complex, ensuring that only rice deemed suitable for human consumption by an expert committee appointed by the Gampaha Divisional Health Services Director will be distributed in the meal programme for school children.

Responding to concerns raised by the Public Health Inspectors’ Union (PHIU) regarding the substandard condition of rice stocks, the Presidential Secretariat emphasised its commitment to health and safety standards in a statement issued yesterday (22).

Whilst acknowledging the allegations, the Secretariat highlighted that all rice stocks selected for distribution have been endorsed by an expert committee, relying on analytical reports from the Government Analyst’s Department and the Medical Research Institute.

However, amidst these assurances, there is criticism against the government for the need to respond to allegations in the first place, suggesting that adequate measures should have been in place to prevent such concerns from arising.

In response to the allegations, the Presidential Secretariat’s Partnership Secretariat for World Food Programme (WFP) Co-operation has instructed all Provincial Chief Secretaries to mobilise a team from the health sector to conduct a thorough re-inspection of the rice stock and ensure its safety for consumption.

They are also tasked with strategising to utilise this rice stock before May 01.

The statement outlined the rigorous protocol in place for the distribution of rice stocks, emphasising that senior officers from the Provincial Department of Education and Public Health Inspectors (PHIs) must confirm its suitability for human consumption before release to the respective provinces.

Furthermore, to enhance health safety and food quality for schoolchildren, the Secretariat underscored the importance of inspection by PHIs and representatives of the School Nutrition Committee before distributing rice supplied by the WFP.

While reassuring the public of the quality and safety of the rice stocks, the Secretariat emphasised compliance with international food packaging standards and advised the utilisation of the rice before May 31.

In conclusion, following a comprehensive inspection representing diverse health sector considerations, the WFP has confirmed the suitability of the rice stocks, providing reassurance amid concerns.

Update: Army clarifies ‘unintentional’ scheduling of ‘Fox Hill Super Cross Race’ clashing with 5-year anniversary of Easter Carnage

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April 23, Colombo (LNW): The Sri Lanka Army has addressed concerns regarding the scheduling of the ‘Fox Hill Super Cross’ race on April 21st, coinciding with the fifth anniversary of the Easter Attacks, stating that the decision was unintentional.

Amidst heavy public criticism over holding the event on a day of national mourning, the Army emphasised that the selection of April 21st was not deliberate.

Criticism has arisen, particularly on social media platforms, questioning the appropriateness of holding the race on the same date as the tragic Easter bombings of 2019, which also marked the last motor race event halted midway due to the terrorist attacks.

Additionally, scrutiny has been directed towards an after-event with DJ music organised in Bandarawela following the races, held on Sunday night despite the unfortunate accident at the races resulting in seven fatalities, including a child, and 30 injuries.

The decision to hold the motor race after a four-year hiatus was primarily in response to overwhelming demand from spectators and motorsports enthusiasts, according to Major General Indu Samarakoon, Deputy Chief of Staff and Chairman of the Army Motorsports Committee.

April 21st was selected as the immediate holiday following the Sinhala and Tamil New Year, he noted.

Major General Samarakoon clarified that the Army had no involvement in the after-party organised on Sunday night, stating that the Fox Hill Super Cross event has never included after-parties in its 28-year history.

Addressing concerns circulating on social media about a party named ‘Fox Hill Journey,’ Samarakoon reiterated the Army’s lack of association with such events, emphasising that the cancellation of the race was immediate upon learning of the Easter bombings in 2019.

Related news:

Central Bank identifies additional entities involved in prohibited schemes

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April 23, Colombo (LNW): The Central Bank of Sri Lanka (CBSL) has announced the identification of eight additional entities involved in conducting or having conducted prohibited schemes.

In a notice addressed to the general public, the Central Bank emphasised that participating in pyramid schemes constitutes a punishable offense under Sri Lankan law.

The CBSL reiterated its ongoing efforts to safeguard consumers and preserve the integrity of the financial system by combatting illicit financial activities.

NPP accepts SJB’s challenge for economic debate, extends official invitation to SJB

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April 23, Colombo (LNW): In a proactive move aimed at fostering transparent and constructive political dialogue, the National People’s Power (NPP) has formally communicated with the Samagi Jana Balawegaya (SJB), the main opposition party in Parliament, regarding the proposed debate between NPP Leader, MP Anura Kumara Dissanayake and SJB Leader, MP Sajith Premadasa.

Yesterday (22), executive member of the NPP, former MP Dr. Nalinda Jayatissa dispatched a letter to SJB Secretary General MP Ranjith Madduma Bandara, extending invitations for the debate to be held on one of the following dates: May 7, 9, 13, or 14.

The communication underscored the importance of establishing a definitive date for the debate to prevent potential misunderstandings among the public.

The NPP has expressed its readiness to engage in this critical exchange of ideas and viewpoints, highlighting the significance of transparent discourse in shaping informed public opinion.

Previously, many MPs and stalwarts of the SJB challenged the NPP to debate on which course should the JVP-led alliance take were the economic crisis facing Sri Lanka to be resolved under an NPP-rule.

The NPP awaits the prompt response of the SJB regarding their stance on the proposed debate, fostering an environment conducive to meaningful political engagement and accountability.

Police open fire at non-compliant three-wheeler, resulting in two fatalities

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April 23, Colombo (LNW): Tragedy unfolded in Moragahahena as police officers resorted to opening fire at a three-wheeler that failed to adhere to directives to stop.

This unfortunate incident led to the loss of two lives.

The encounter occurred near the vicinity of a tyre factory in Moragahahena.

Regrettably, despite police warnings, the three-wheeler driver did not halt the vehicle, prompting law enforcement to take action.

While two individuals succumbed to the consequences of the gunfire, another occupant of the vehicle managed to evade capture during the incident.

Inflation Rate drops to 2.5% in March 2024

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April 23, Colombo (LNW): The Department of Census and Statistics (DCS) in its latest report has revealed a decrease in the overall rate of inflation, as measured by the National Consumer Price Index (NCPI) on a Year-on-Year basis, to 2.5 per cent in March 2024,

This marks a notable decline from the 5.1 per cent recorded in February 2024.

While the contributions to the inflation rate in March 2024 from the food group and non-food group stand at 2.1 per cent and 0.4 per cent respectively, there are notable fluctuations in specific categories within these groups.

The Y-o-Y inflation of the food group remained steady at 5.0 per cent in March 2024, consistent with February 2024, with the Y-o-Y inflation of the non-food group decreasing to 0.7 per cent from 5.1 per cent in the same period, according to report.

This decline in the non-food group index values in March 2024, compared to the previous month, can be attributed primarily to price decreases in categories such as ‘Housing, Water, Electricity, Gas and Other fuels’ (including electricity bills) and ‘Clothing and Footwear’.

However, price increases were reported in categories such as ‘Alcoholic Beverages, Tobacco and Narcotics’ and ‘Restaurants and Hotels’.

Moreover, core inflation, which excludes volatile items like food, energy, and transport, has seen an increase to 3.4 per cent in March 2024 from 2.7 per cent reported in February 2024, indicating underlying inflationary pressures within the economy.

While these figures may suggest some degree of stability, it would be imperative to note that challenges persist, particularly in addressing the cost of living for citizens.

The government must continue to implement robust economic policies aimed at mitigating inflationary pressures and ensuring sustainable economic growth, according to analysts.

Railways General Manager passes away

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April 23, Colombo (LNW): H.M.K.W. Bandara, the General Manager of Railways, tragically passed away this morning (23) after succumbing to a sudden and unexpected illness.

Ada Derana confirmed his demise this morning.

Showers, thundershowers further expected in multiple provinces, Heat Index reaches ‘Caution’ level (April 23)

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By: Isuru Parakrama

April 23, Colombo (LNW): Showers or thundershowers will occur at several places in Western, Sabaragamuwa, Central, Uva and North-western provinces and in Galle and Matara districts after 2.00 p.m., with showers or thundershowers being expected to occur at a few places in North-central and Northern provinces during the afternoon or night, the Department of Meteorology said in its daily weather forecast today (23).

Showers or thundershowers will occur over the coastal areas of Puttalam to Galle via Colombo during the morning too, the statement added.

Fairly heavy showers about 75 mm are likely at some places in Western and Sabaragamuwa provinces and in Galle and Matara districts.

Misty conditions can be expected at some places in Sabaragamuwa, Central and Uva provinces and in Ampara district during the morning.

General public is kindly requested to take adequate precautions to minimise damages caused by temporary localised strong winds and lightning during thundershowers.

Marine Weather:

Condition of Rain:
Showers or thundershowers will occur at several places in the sea areas off the coast extending from Puttalam to Matara via Colombo and Galle.
Winds:
Winds will be southwesterly or variable and wind speed will be (20-30)kmph.
State of Sea:
Sea areas around the island will be slight. Temporarily strong gusty winds and very rough seas can be expected during thundershowers.

Meanwhile, heat index, the temperature felt on human body is further expected to increase up to ‘Caution level’ at some places in Northern, North-central, Western, Sabaragamuwa, Eastern, Southern and North-Western provinces and Monaragala district.

The public, therefore, is advised to stay hydrated and take breaks in the shade as often as possible, check up on the elderly and the sick, never leave children unattended, limit strenuous outdoor activities, find shade and stay hydrated, wear lightweight and white or light-coloured clothing.