New Deadline Set for SriLankan Airlines’ Privatisation RFQ as Potential Bidders Seek Extension

Sri Lanka’s State Enterprises Restructuring Unit (SRU) has extended the deadline for the submission of Request For Qualification (RFQ) applications from interested parties for the partial privatisation of SriLankan Airlines (UL). Originally set for December 5, 2023, the deadline has been pushed to January 9, 2024, following requests from potential bidders for additional time.

Key Points:

1. Deadline Extension: The SRU, overseeing the partial privatisation of SriLankan Airlines, has granted an extension for the submission of RFQs to January 9, 2024. The move comes in response to requests from prospective bidders seeking more time to fulfill the technical, financial, and legal criteria outlined in the RFQ process.
2. RFQ Requirements: Interested parties vying for a majority stake in SriLankan Airlines are required to meet specific technical, financial, and legal criteria as part of the RFQ process. The extension allows potential buyers additional time to prepare and submit their applications.
3. Bidding Process: Once pre-qualified through the RFQ stage, prospective buyers will proceed to the bidding phase, anticipated to take place in the first quarter of 2024. The SRU aims to have a bidder selected and a letter of intent signed by the end of May 2024, assuming no further delays.
4. Expressed Interest: Multiple entities, including Emirates, Etihad Airways, and the Adani Group, have reportedly expressed interest in SriLankan Airlines. However, not all interested parties may progress to the formal RFQ stage.
5. Government Privatisation Drive: The partial privatisation of SriLankan Airlines aligns with the Sri Lankan government’s broader strategy to privatise stakes in state-owned enterprises. The goal is to enhance operational efficiency, reduce losses, and stimulate private sector involvement.
6. Financial Outlook: SriLankan Airlines has witnessed an improvement in its financial performance. In the 12 months to March 31, 2023, the airline would have reported a local currency profit, excluding foreign exchange losses and financing costs. The SRU’s privatisation initiative coincides with this positive trend.

The extended deadline for RFQ submissions provides potential bidders with an opportunity to thoroughly meet the outlined criteria, reflecting the complexities involved in the privatisation process of SriLankan Airlines amid increasing interest from various entities.