Emirates has confirmed that it has completed the sale of its stake in SriLankan Airlines for the sum of $53 million. The airline has given over its share in the flag carrier to the Sri Lankan government at a loss estimated to be in the region of $20 million on the original purchase price and around $100 million on what the airline was valued at just two years ago.

P B Jayasundera, Treasury Secretary for the Sri Lankan government, said that the 44 per cent share in the airline had been acquired through the state owned Bank of Ceylon. Jayasundera confirmed that the shares in the carrier would be held by the bank and that a partner was now being sought to look after the stake and maintain the character of the airline.

The move follows an announcement by the Sri Lankan government earlier in the year that it wished to increase its majority share in the airline. A spokesperson for Emirates said that the sale of its shares in the airline was now complete.

12 years ago, Emirates purchased a 10-year management contract as well as shares in SriLankan Airlines. Whilst in charge, Emirates oversaw the purchase of six Airbus A330-200s as well as upgrading the airline’s fleet of A340s into a business and economy class configuration.

The global economic crisis affected SriLankan Airlines in much the same way as most other carriers and it has only recently managed to break even. Terrorist attacks also destroyed four of the planes in its fleet and badly damaged two others.