In a monumental move within the aviation industry, Supreme Global Holdings, a conglomerate under the ownership of R.M. Manivannan, has stepped into the competitive bidding arena to acquire SriLankan Airlines, the national carrier of Sri Lanka.
The conclusion of the Expression of Interest (EOI) process revealed an unexpected contender in the form of Supreme Global, signaling a potential shift in the ownership and management landscape of the airline. Supreme Global has forged a formidable consortium, enlisting the support of MBS Investments, the investment arm of the Private Office of Nayef Bin Eid Al Thani of Qatar, and Sherisha Technologies Private Limited, formerly known as SunEdison Energy India Private Limited. This strategic alliance is poised to bring substantial financial and operational capabilities to the forefront, potentially swaying the outcome of the bid in favor of Supreme Global’s acquisition of SriLankan.
The privatization of SriLankan Airlines arrives at a pivotal juncture for the carrier, which has grappled with various challenges over the years, including financial setbacks and strategic missteps. The entry of seasoned and financially robust players like Supreme Global holds the promise of injecting much-needed vitality and strategic direction into the airline’s operations.
This bid assumes heightened significance against the backdrop of current geopolitical dynamics in the Indo-Lanka region. While there is strong speculation that Sherisha Technologies is supported by the Government of India, the involvement of a Sri Lankan entity alongside a prominent Indian firm and substantial financial backing from a Qatari entity underscores a strengthening of ties and shared interests across these regions. Qatar’s substantial wealth and strategic investments on a global scale position it as a pivotal player in this arrangement, potentially offering SriLankan Airlines opportunities to leverage these relationships for expanded routes, bolstered operational capabilities, and improved financial stability. Moreover, Supreme Global Holdings has already demonstrated its commitment to Sri Lanka’s stability and growth during the recent energy crisis by extending over USD 1.5 billion in credit to Sri Lanka, along with innovative payment solutions, such as accepting Sri Lankan rupees for oil payments.
The prospective acquisition of SriLankan Airlines by Supreme Global Holdings could serve as a cornerstone for further economic recovery and development in Sri Lanka. The combined expertise and resources of the consortium—spanning Sri Lanka, India, and Qatar—hold the promise of not only revitalizing the airline but also enhancing its competitive positioning within the international aviation market. Additionally, AirAsia Consulting Malaysia, Dharshaan Elite Investment Holding (Pvt) Ltd, Treasure Republic Guardians Limited, FITS Aviation (Private) Limited, and Hayleys PLC, all from Sri Lanka, have also submitted Requests for Qualifications (RfQs), further indicating the robust interest in the airline’s privatization process.
The International Finance Corporation (IFC) will play a pivotal role in advising the government on the divestiture process, ensuring transparency and optimal outcomes for all stakeholders involved.
As stakeholders and observers keenly monitor developments, the unfolding scenario holds the potential to redefine the future trajectory of SriLankan Airlines, transforming it into a beacon of successful multinational collaboration in South Asia.
