8-Jul-2010 9:36 AM

Government buys back Emirates' share in SriLankan

Sri Lanka's Government confirmed the buy-back of Emirates' 43.6% stake in SriLankan Airlines for USD53 million (ColomboPage, 07-Jul-2010). Treasury Secretary, Dr PB Jayasundara, stated the Government acquired the stake for approximately one-third of the price Emirates requested in 2008 through the Bank of Ceylon. Emirates requested USD150 million for the stake in Apr-2008, when it ended its 10-year management contract with SriLankan. Emirates acquired a 40% stake in SriLankan for USD70 million in 1998 and later acquired a further 3.6%. SriLankan was formerly owned the Sri Lankan Government (51%), Emirates (43.6%) and the remaining stake by employees (Bloomberg, 07-Jul-2010).