The management rights for Sri Lanka’s Mattala Rajapaksa International Airport in Hambantota have been awarded to a joint venture between an Indian and a Russian firm, the government spokesman stated on Friday.
The $209 million facility was once called the “world’s emptiest airport” because it lacked sufficient flights and passenger traffic.
Partnership secures management rights
Government spokesman and minister Bandula Gunawardena informed reporters that during the January 9th meeting of the Sri Lankan Cabinet, approval was granted for the solicitation of Expressions of Interest from prospective parties.
Accordingly, five proposals were submitted, and after deliberation by the Cabinet-appointed consultative committee, a decision was made to grant a 30-year management contract to Shaurya Aeronautics (Pvt) Ltd of India and Airports of Regions Management Company of Russia.
Gunawardena stated that the Cabinet gave its approval to the proposal submitted by the Minister of Civil Aviation and Airport Services.
The Mattala Airport, named after former President Mahinda Rajapaksa, stands as one of the significant infrastructure undertakings of his nearly decade-long tenure.
The financing for the project came from high-interest Chinese commercial loans.
The construction cost totaled $209 million, with the majority, $190 million, sourced from a high-interest loan provided by the Exim Bank of China.
Since 2016, the government has been actively seeking commercial partners to oversee the management of the airport due to significant financial losses incurred.
