<p class="title">Cash-strapped Sri Lanka's loss-making national carrier announced plans Thursday to lease up to 21 aircraft, just two days after the government announced a default on its $51 billion foreign debt.</p>.<p class="bodytext">The island nation is in the grip of its most painful economic downturn since independence in 1948, with severe shortages of essential goods and regular blackouts causing widespread misery.</p>.<p class="bodytext">Huge protests have called for the resignation of the government, which has begged Sri Lankans abroad to send cash home to help pay for essential imports.</p>.<p class="bodytext">Despite the ongoing crisis, state-owned Sri Lankan Airlines has unveiled plans to expand its fleet from 24 to 35 in the next three years and replace some of its ageing jets.</p>.<p class="bodytext">"Sri Lankan Airlines has issued four requests for proposal to lease up to 21 aircraft to support its long-term business strategy," it said in a brief statement.</p>.<p class="bodytext">The announcement came after the government suspended repayment of all its foreign borrowings, ahead of negotiations for a debt restructuring with the International Monetary Fund next week.</p>.<p class="bodytext">The national carrier did not say how it planned to finance the leases, with its balance sheet showing a $1.7 billion debt and a carried forward loss of $1.56 billion in March 2021.</p>.<p class="bodytext">The IMF has also repeatedly urged Sri Lanka to privatise the airline, saying it was a white elephant the country cannot afford.</p>.<p class="bodytext">The airline was profitable before the government cancelled a management agreement with Emirates of Dubai in 2008, following a personal dispute with current Prime Minister Mahinda Rajapaksa.</p>.<p class="bodytext">The carrier had refused to bump fare-paying passengers and give their seats to members of Rajapaksa's family, who were returning from a holiday in London.</p>.<p class="bodytext">Rajapaksa removed the Emirates-appointed chief executive of Sri Lankan Airlines and made his brother-in-law Nishantha Wickremasinghe head of the company.</p>.<p class="bodytext">An earlier plan to lease eight Airbus A350 jets during Rajapaksa's tenure is subject to an ongoing criminal investigation.</p>.<p class="bodytext">The airline's then-chief executive Kapila Chandrasena and his wife were arrested two years ago after an international investigation found they received at least $2 million in kickbacks over the order.</p>
<p class="title">Cash-strapped Sri Lanka's loss-making national carrier announced plans Thursday to lease up to 21 aircraft, just two days after the government announced a default on its $51 billion foreign debt.</p>.<p class="bodytext">The island nation is in the grip of its most painful economic downturn since independence in 1948, with severe shortages of essential goods and regular blackouts causing widespread misery.</p>.<p class="bodytext">Huge protests have called for the resignation of the government, which has begged Sri Lankans abroad to send cash home to help pay for essential imports.</p>.<p class="bodytext">Despite the ongoing crisis, state-owned Sri Lankan Airlines has unveiled plans to expand its fleet from 24 to 35 in the next three years and replace some of its ageing jets.</p>.<p class="bodytext">"Sri Lankan Airlines has issued four requests for proposal to lease up to 21 aircraft to support its long-term business strategy," it said in a brief statement.</p>.<p class="bodytext">The announcement came after the government suspended repayment of all its foreign borrowings, ahead of negotiations for a debt restructuring with the International Monetary Fund next week.</p>.<p class="bodytext">The national carrier did not say how it planned to finance the leases, with its balance sheet showing a $1.7 billion debt and a carried forward loss of $1.56 billion in March 2021.</p>.<p class="bodytext">The IMF has also repeatedly urged Sri Lanka to privatise the airline, saying it was a white elephant the country cannot afford.</p>.<p class="bodytext">The airline was profitable before the government cancelled a management agreement with Emirates of Dubai in 2008, following a personal dispute with current Prime Minister Mahinda Rajapaksa.</p>.<p class="bodytext">The carrier had refused to bump fare-paying passengers and give their seats to members of Rajapaksa's family, who were returning from a holiday in London.</p>.<p class="bodytext">Rajapaksa removed the Emirates-appointed chief executive of Sri Lankan Airlines and made his brother-in-law Nishantha Wickremasinghe head of the company.</p>.<p class="bodytext">An earlier plan to lease eight Airbus A350 jets during Rajapaksa's tenure is subject to an ongoing criminal investigation.</p>.<p class="bodytext">The airline's then-chief executive Kapila Chandrasena and his wife were arrested two years ago after an international investigation found they received at least $2 million in kickbacks over the order.</p>