Sri Lanka to sell its flag carrier

In a bid to cut losses, the new government of Sri Lanka has been planning to sell its national flag carrier.

Besides, the authorities have been forced to print currency to clear the government salaries, according to media reports.

In a televised message on Monday, newly-elected Prime Minister Ranil Wickremesinghe said the government is planning to privatise Sri Lankan Airlines as the carrier lost around $124 million in the year ending March, 2021.

“It should not be that this loss has to be borne by the poorest of the poor who have not set foot in an aircraft,” Wickremesinghe said.

Wickremesinghe -- less than a week into the job -- said he was forced to print money to pay salaries, which will pressure the nation's currency.

The nation has only one day's stock of gasoline and the government is working to obtain dollars in the open market to pay for three ships with crude oil and furnace oil that have been anchored in Sri Lankan waters, Wickremesinghe said.

“The next couple of months will be the most difficult ones of our lives,” Wickremesinghe said. “We must immediately establish a national assembly or political body with the participation of all political parties to find solutions for the present crisis.”

The premier pledged to announce a new “relief” budget to replace President Gotabaya Rajapaksa's “development” budget that helped stoke Asia’s fastest inflation rate.

The cabinet will propose that parliament increase the treasury bill issuance limit to 4 trillion rupees from 3 trillion rupees, Wickremesinghe said, forecasting a budget deficit of 13% of gross domestic product for the year ending December 2022.