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Sri Lankan cabinet to absorb losses of failing airline

The Sri Lankan government announced that it would be absorbing millions of dollars of losses incurred by its failing airline Mihin Lanka.

The airline, which is expected to be liquidated soon according to the Daily Mirror, will go on to sell its permit.

It is reported that Mihin Lanka owes Rs.4,860 million to the People’s Bank and Rs.1,700 million to the national carrier, SriLankan airlines.

The total debt comes to over USD $40,000,000.

Former Foreign Ministry Monitoring MP Sajin de Vass Gunawardena is the former CEO of the government owned airline, with some Sri Lankan ministers suggesting that a president commission should be appointed this week to investigate financial irregularities. The former MP was arrested over his role in the airline’s running and is under investigation by Sri Lanka’s Financial Crime Investigation Division (FCID).