The Sri Lankan Government is all set to buy back 43.6 per cent stake in the national carrier SriLankan Airlines held by Emirates, said its chairman Nishantha Wickremesinghe.

Emirates had bought stake for $70 million in 1998, in line with the privatisation of the airline, then known as Air Lanka.

Although the Sri Lanka government retained a 51 per cent stake, Emirates was given management control for 10 years.

When that period ended in 2008, Emirates valued its holding at around $150 million.

'The deal is close to being finalised,' Wickremesinghe said, adding that 'It is now between the government and Emirates.'

Wickremesinghe did not give details of the buy-back deal, but airline sources said it could be between $55 million and $65 million. 'Papers are being exchanged and a deal should be ready soon,' the source said.

'The government wants to finance the purchase through at least two of its profit-making commercial enterprises,' the source added.

SriLankan had posted a loss of Rs10 billion ($87 million) in the year ended March, hurt by falling tourist arrivals and the global recession.