May 30, Colombo: Sri Lanka's grounded state-run budget airline Mihin Lanka is to recommence its operations from July with a dry lease air craft, while seeking an 800,000 dollar cash from the Treasury, its CEO Sajin de Vass Gunawardena said.

Addressing a press conference, Mr. Gunawardena said that operations are currently on hold due to lack of planes as the last aircraft, an Airbus A321, was reclaimed by its Bulgarian owners in late April.

“We had to give that (A321) plane up, because we didn't have money to pay the lease,” Mr. Gunawardena told media.

“We are negotiating with three parties, some French partners, to get an Airbus A320 on a dry lease, the aircraft is 17-years-old,” he said adding that “we are confident the Treasury will help us, to resume commercial operations in July.” Mr. Gunawardena also said he tendered his resignation to the airline's board yesterday.