Sri Lanka proposes privatizing national airline amid crisis

COLOMBO, Sri Lanka (AP) — Sri Lanka’s new prime minister on Monday proposed privatizing the country’s loss-making national airline as part of reforms aimed at solving the country worst economic crisis in decades.

Prime Minister Ranil Wickremesinghe said in a message to the people that he plans to propose a special relief budget that will take the place of the development-oriented budget earlier approved for this year, He said it would channel funds previously allocated for infrastructure development to public welfare.

He said the country's financial health is so poor that the government has been forced to print money to pay the salaries of government workers and buy other goods and services.

President Gotabaya Rajapaksa appointed Wickremesinghe as prime minister last Thursday in a bid to quell the island nation’s political and economic crisis.

The president’s brother, Mahinda Rajapaksa, stepped down as prime minister on May 9 amid violence that left nine people dead and more than 200 wounded. Protesters have demanded the powerful Rajapaksa family resign to take responsibility for leading the country into the economic crisis.

For months, Sri Lankans have been forced to wait in long lines to purchase scarce imported essentials such as medicines, fuel, cooking gas and food because of a severe shortage of foreign currency. Government revenues have also plunged.

Wickremesinghe said Sri Lankan Airlines lost about $123 million in the 2020-2021 fiscal year, which ended in March, and its aggregate losses exceeded $1 billion as of March 2021.

“Even if we privatize Sri Lankan Airlines, this is a loss that we must bear. You must be aware that this is a loss that must be borne even by the poor people of this country who have never stepped on an airplane,” Wickremesinghe said.

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