Mihin Lanka Airlines will be getting a Rs. 500 million loan facility from the Treasury before March 31 to set off its loan taken from Lankaputhra Development Bank, Bank Chairman A. Sarath De Silva said. He said the rupee loan is an old interest bearing instrument that has been used in the past in order to turn a non performing asset into a performing asset.
The Bank expects to get the rupee loan facility before end March in order to help them balance their books before the end of their financial year.
Mr. De Silva said the Rs.500 million is most likely within the Rs.6 billion in the 2009 budget which was allocated to restart operations of Mihin Lanka. He added that the government is honoring its commitment to the Bank through the loan facility. |
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