July 5, 2013 (LBO) – Sri Lanka’s state-run Mihin Lanka, a loss-making budget carrier has been given 616 million rupees in Treasury guarantee to borrow from a state bank, finance ministry data shows. Separately the Treasury had guaranteed a 175 million US dollar-equivalent loan (22.
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54 billion rupees) from Mashreq Bank in UAE until June 2016.
In February Mihin Lanka had been given a guarantee for a 2.78 million US dollar (367 million rupees) facility up to December 2016 from Bank of Ceylon.
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Another million dollar (128.82 million rupees and a 910,000 dollar facility (121 million rupees) had been given by the Bank of Ceylon, which were guaranteed up to June 30, 2013, a fiscal report had shown.
Mihin Lanka had been running large losses and is now partly integrated with state-run full- service carrier SriLankan, which is making even larger losses.