Quit Notice

Jan 06, 2007 (LBO) – Emirates said it would stop managing Sri Lankan Airlines after March 2008, ending months of controversy and a troubled relationship that culminated with the island government canceling the visa of its resident manager in Colombo. .Updated "Emirates has notified the Government of Sri Lanka that it will not be renewing the Shareholder's Agreement which expires on 31st March 2008," Emirates chief Tim Clarke said in a statement.

Emirates said it will keep a 43.6 percent shareholding of Sri Lankan "for the time being" and remain on the board of the airline, though management control of Sri Lankan airlines will pass on to the Sri Lankan government.

Clark was quoted by reports from Dubai as saying that Emirates would be willing to sell its stake for around 150 million dollars.

Clark was in Colombo last week for a final round of negotiations. Sri Lanka's government earlier cancelled the resident visa of Peter Hill, an Emirates-appointed chief executive.

At the time Emirates said Hill would run the airline from Dubai until March.

Shortly before the quit notice was sent, Emirates reportedly relaxed a ban on Sri Lankan staff seeking better paying jobs at the Dubai-based carrier. The ban was imposed after Emir