Sri Lanka's two state banks are bracing for a possible financial crisis after being directed by the cash-strapped government to lend more than Rs 180 billion to cushion steep losses of state enterprises including the Ceylon Petroleum Corporation (CPC) and the Ceylon Electricity Board (CEB). Losses have been mounting in these two institutions owing to high crude oil prices in the world market and the depreciation of the rupee, official sources said.

While the Mattala International Airport (MIA) is targeting at least 24 flights per week upon commencement in November this year, the national carrier is to invest approximately Rs.150 million to begin its operations at Weerawila.