Sri Lanka, Feb. 17 -- The government has proposed a Rs. 20,000 million allocation in the 2025 budget to address SriLankan Airlines' legacy debt. This includes Rs. 10,000 million for loan capital repayment and another Rs. 10,000 million for interest payments.

Despite previous failed attempts to privatize the national carrier, the government aims to settle the airline's legacy debt while holding SriLankan Airlines accountable for maintaining operating profitability thereafter. A new medium-term strategic plan is being formulated to ensure financial stability.

The agreement with banks is expected to facilitate the debt settlement, marking a crucial step in restructuring the airline's financial operations.

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