Emirates says it will not renew its Shareholders' Agreement with SriLankan Airlines.

SriLankan Airlines' Managing Director Timothy Clark said in a prepared statement, "Emirates has notified the Government of Sri Lanka that it will not be renewing the Shareholders' Agreement which expires on 31 March 2008 and accordingly, with effect from 1 April 2008, management control of SriLankan Airlines will pass to the Government of Sri Lanka."

Emirates will continue to manage the company until March 31, 2008 through the offices of Peter Hill and his management team. Emirates will retain its 43.6% equity in the company for the time being and continue to have a board of directors presence.