Sri Lanka offers Emirates $55m for airline stake

Sri Lanka has offered $55 million to buy back the 43.6 percent stake Dubai's Emirates airline holds in national carrier SriLankan Airlines, the island nation's treasury secretary said on Friday.

Emirates, the Arab world's largest airline, had no immediate comment on Friday, but earlier this week had said it was willing to sell the stake "at the right price".

"Sri Lanka is going to buy it ... $55 million is the price we have indicated," P.B. Jayasundera, secretary of the finance ministry and the treasury, said.

Emirates has been trying to sell all or part of the stake since 2008, which had previously been valued at about $150 million and for which it paid $70 million in 1998. It is Emirates' only investment in another airline.

"The deal is almost done," Jayasundera said. "We are looking for a strategic partner or somebody from the government to take that (the stake) and maintain the commercial character of SriLankan (Airlines)."

He declined to say whether an arm of the government would take over the stake, or whether it would be sold to an outside partner.

The government will facilitate the transfer "to Bank of Ceylon or somebody who can basically participate in a business," Jayasundera said, referring to the largest state-owned bank.

Sri Lanka's government in 2008 declined to extend Emirates' management contract after cancelling the work permit of SriLankan Airlines' then-chief executive, who had been appointed by Emirates.