The Sri Lankan government has decided to restructure, rather than privatise, SriLankan Airlines after none of the interested parties were deemed suitable.
In 2023, the government had initially decided to sell a 51pc stake in the state-owned carrier as part of broader economic reform.
Requests for qualification were received from several parties in response to a formal solicitation process, but none were found to be suitable.
The government will now focus on restructuring the airline, with only 49pc of the shares allowed to be sold to a non-Sri Lankan company.
