By: Vibhuti Pathak
The government is contemplating adopting an open skies policy alongside plans to privatise its national carrier, Sri Lankan Airlines. The move aims to boost tourism and transform the country into a regional air hub. Six bids have been received for the airline’s privatisation. However, the decision on open skies is pending, as officials evaluate its potential benefits and drawbacks in balancing national interests and global access.
There have been discussions held to decide whether to adopt the open skies policy in Sri Lanka. The government seems to be in a ‘dilemma’ as stated by an official in the divestiture of the shares of ‘Sri Lanka Airlines.’
The government has called for bids to privatise or restructure the national carrier. The ‘Open Skies policy’ means the liberalisation, ease of access, and rules of use of national airports for foreign airlines. This venture will increase the tourist flow and develop its potential as a regional air hub.
The policies of the Ministry of Finance, Economic Stabilization, and National Policies call for a Request for Qualification (RfQ) from potential investors for the acquisition of shares in Sri Lanka Airlines Limited. The last date for proposal submission was April 22. This decision is oriented towards the recent acquisition of Rajpaksa International Airport by Indian and Russian companies. An effort has been made to grow profits.
The RfQs received were considered by the Opening Committee appointed by the Special Cabinet Appointed Negotiating Committee, where a total of six RfQs were received from companies like AirAsia Consulting Sdn. Bhd., Dharshaan Elite Investment Holding (Pvt) Ltd., FITS Aviation (Private) Limited, Sherisha Technologies Private Limited, Treasure Republic Guardians Limited, and Hayleys PLC.
In the event of the adoption of an open skies policy, the concept of a national career will not be important since the country will be open for global airlines to operate based on economic, and commercial conditions. However, the availability of a national carrier is important to serve people when other airlines don’t operate in unattractive commercial conditions.
“There are pluses and minuses of such a policy. We have to weigh the pros and cons. We are yet to decide on it,” said the top official of the government.
