SL Airlines employees charge that govt is attempting to buy their shares at low rate

SL Airlines employees charge that govt is attempting to buy their shares at low rate

Written by Bella Dalima

06 Oct, 2014 | 9:08 pm

Shareholder employees of SriLankan Airlines charge that the government is attempting to buy back their shares of Sri Lankan Airlines Limited at a very low rate. They charge that the government is attempting to purchase employees’ shares at a rate of Rs.50.

The AGM of Sri Lanka Airlines was held in Colombo on Monday. Shareholder employees of the company staged a demonstration against company officials who they are preparing to buy back employee shares at a rate of Rs.50.

Employees request the officials to grant them the a rate which reflect the prices of the share which were given to them fifteen years ago. 95.21 % shares of SriLankan Airlines belongs to government. 0.53 % of the shares belong to employees while the remaining 4.35% of shares belong to three state banks and the EPF.

When Emirates Airlines took over SriLankan Airlines in 1999,  9 % of these shares were given to employees for free.Convener of the retired Sri Lanka Airlines Employees Shareholders Association, B.G. Tilakaratne revealed that in 2001 Emirates Airlines has brought employee shares at a price of around 245 rupees.

He added that during the time only a certain group of employees sold their shares. Furthermore, Tilakaratne stated that when the shareholder employees inquired from the board of directors about the rate at which they brought back shares of the company from Emirates Airlines, the board declined to provide information.

He also charged that officials are taking steps to buy back shares belonging to employees at a very low rate after they complained to the government that they are not receiving any benefits of shareholder and requested the government to buy back these shares.

SriLankan Airlines is suffering losses at the moment.

According to the Central Bank,  SriLanka Airlines suffered an operational loss of Rs.27 and that the company suffered a loss of Rs.28.6 billion in 2013.

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