SriLankan uses new debt to service old payments

SriLankan uses new debt to service old payments

Written by Staff Writer

10 Oct, 2018 | 1:18 am

Colombo (News1st): It was revealed at the Presidential Commission today (October 09), Sri Lankan Airlines secured a loan in 2017, a portion of this was used to pay the penalty for the cancellation of aircraft lease agreements.

It was also revealed that in February 2017, a further loan of USD 34.5 million was issued by SCB to SLA, of which USD 27 million was a bridge loan, to pay penalties the airlines’ incurred due to the cancellation of lease agreements.

It was also revealed, the airline had incurred a loss due to the airlines’ inability to meet with the terms of a bank loan obtained from Mashrik Bank. It was also revealed the syndicated loan of 150 million dollars was obtained under Islamic banking facilities, to pay for these losses.

SLA had requested SCB London to act as a loan arranger for the syndicated loan facility arranged between the Al Hilal Bank, the Abudhabi Islamic Bank, the Noor Islamic Bank, United Bank Limited and Commercial Bank Sri Lanka.

These losses have been made by those responsible in SriLankan Airlines. And questions have been raised why actions have not been taken against them?

Why are those responsible not arrested and their passports impounded? 

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