Sri Lanka’s airline sell off fails, seeks new partner

Colombo

A US equity firm that bid to buy a stake in Sri Lanka’s loss-making national airline has pulled its offer, officials said Saturday as the carrier scrambled for a new partner. TPG, a San Francisco-based private equity firm, has withdrawn its bid for a 49 percent stake in Sri Lankan, dashing hopes of a quick revival of the airline. “After completing the due diligence, regrettably TPG have informed us they will not pursue a potential investment in Sri Lankan airlines,” Sri Lankan Chairman Ajith Dias said in a memo to his staff. “It is their opinion that allocating the human and financial resources to make the airline profitable will not realise sufficient returns compared to the many other investment opportunities that are available to them,” Dias said. There was no immediate comment from TPG. Sri Lanka’s flag carrier has accumulated debts and losses of over $2 billion.—APP

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