Sri Lanka has extended the deadline for expressions of interest in oneworld member SriLankan Airlines and its low-cost subsidiary, Mihin Lanka, until Aug. 31.

The Sri Lankan government is looking to find a strategic investor for the “reorientation” of the two airlines. The exact stake up for sale is unclear, although it has been suggested it could be around 40%.

National Savings Bank subsidiary NSB Fund Management, which is managing the process, formally announced the privatization July 6 and originally set a deadline of Aug. 24.

However, in a recent follow-up notice, NSB said: “The collection of expressions of interest (EOI) is now extended until 1600 hours Sri Lankan time, Aug. 31, 2016.”

Would-be investors have to pay a non-refundable fee of $5,000 to access the documentation. They then have until 1600 on Aug. 31 to submit their proposals.

SriLankan Airlines has been facing increased competition, especially from Gulf carriers, and earlier this year the government said it was considering an equity buy-in from another airline and possible aircraft order cancellations to stem ongoing losses. This was followed by some network cuts.

Emirates acquired a 40% stake in SriLankan for $70 million in 1998 and increased its shareholding to 43.6%, with the government holding a 51% majority. But the partners hit troubles in 2008, triggering a government buy-back in 2010.

(Air Transport World)