Emirates sells stake in Sri Lankan

The Dubai airline owned more than 40% of the shares and has agreed a ten year management deal with the Sri Lankan government-owned airline from 1998.

According to sources in Colombo the Government paid $53 million for the Emirates' stake through the state-owned Bank of Ceylon. The additional 43.63%     stake now gives the government a 94.68% share in the airline. SriLankan's employees hold the remaining 5.32%.

Emirates returned management control of the airline to the government in April 2008 after a public row between the two parties and discussions over the value of the Emirates' stake has been ongoing for the last two years. In the meantime SriLankan has developed closer ties with UAE national carrier – and emirates rival – Etihad.

SriLankan is now focussing on returning to profit and to the service reputation it enjoyed during the Emirates management reign when it was headed by Peter Hill, now head of Oman Air.  SriLankan reportedly suffered losses of $88.17 million in 2009.