The SriLankan Airlines has defaulted on the repayment of a Rs. 71,621 million loan it had obtained from two state banks, says the National Audit Office in a report.
The national carrier received a treasury bond credit facility of USD 200 million in 2016-17.
Without paying it back, it obtained Rs. 29,440 in 2017-18 and a further USD 75 million in 2020-21, noted the report.
Meanwhile, SriLankan has sought a 12-month suspension from its creditors for the payment of interest in lieu of a sovereign bond credit that matures in 2024.
For the USD 175 million loan obtained at seven per cent interest, it repaid a USD 6.13 million interest in July, with two more due at December 25, 2022 and June 25, 2023.
SriLankan obtained this maintenance purpose loan after it annulled its management pact with Emirates Airlines during Mahinda Rajapaksa’s presidency.