In a significant development in the aviation sector, Supreme Global Holdings, a conglomerate owned by R.M. Manivannan, has entered the bidding process to acquire the national carrier, SriLankan Airlines.
The Expression of Interest (EOI) process, which concluded, saw the surprising participation of Supreme Global, signalling a potentially transformative shift in the airline’s ownership and management. Supreme Global has formed a robust consortium including 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 set to bring considerable financial and operational prowess to the table, potentially tipping the scales in favour of Supreme Global’s bid to take over SriLankan.
The privatization of SriLankan comes at a critical time for the carrier, which has faced numerous challenges over the years, including financial losses and strategic misalignments. The introduction of experienced and financially capable players like Supreme Global is expected to inject much-needed vigour and direction into the airline.
This bid is particularly noteworthy given the current geopolitical dynamics in the Indo-Lanka region. Whilst it is believed strongly that Sherisha is backed by the Government of India, the involvement of a Sri Lankan company, alongside a powerful Indian firm and significant financial backing from a Qatari entity, symbolizes a strengthening of ties and mutual interests among these regions.
Qatar’s immense wealth and strategic investments globally make it a pivotal player in this arrangement, potentially offering SriLankan the chance to leverage these relationships for expanded routes, enhanced operational capabilities, and better financial stability. Furthermore, 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 Sri Lankan 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—promise not only to revitalize the airline but also to enhance its competitive edge in the international aviation market. In addition to this AirAsia Consulting Malaysia, Dharshaan Elite Investment Holding (Pvt) Ltd, Treasure Republic Guardians Limited along with FITS Aviation (Private) Limited and Hayleys PLC both from Sri Lanka are the other five to make RfQs.
The International Finance Corporation will advise the government on this divestiture process.
As stakeholders and observers watch closely, the unfolding developments could very well redefine the future trajectory of SriLankan, turning it into a model of successful multinational cooperation in South Asia.
