COLOMBO, Sri Lanka (News Cutter) — Indian media reports that Tata Group is being considered as a possible investor in Sri Lankan Airlines. This was confirmed by News Cutter using a reliable government source.
The Sri Lankan government set up a State-Owned Enterprise Restructuring Unit to facilitate the privatisation or restructuring of State Owned Enterprises (SOEs) such as Sri Lankan.
Tata purchased India’s national carrier, Air India for $2.4 billion two years ago, a move considered a moment of rebirth for the airline.
Furthermore, the Tata Group runs nearly 100 companies worldwide, including budget airline Air Asia and full-service carrier Vistara. Through such acquisitions, Tata has gained a market share of around 27 per cent in the South Asian airline industry.
Sri Lanka’s efforts to revive its economy with financial assistance from the International Monetary Fund (IMF) have presented opportunities for Indian businesses.
As Sri Lanka considers divesting from sectors such as airlines, hotels, and hospitals, more Indian investors are expected to be attracted.
It is worth noting that Sri Lankan was previously privatised, with 40 per cent of its shares sold to Emirates Airlines, the flag carrier of the United Arab Emirates (UAE) which managed operations aspects of the airline.(Lahiru Doloswala)