Sri Lanka receives seven expressions of interests for starting businesses at MRIA
The Morning: Sri Lanka has received seven expressions of interest (EOIs) to invest in direct and indirect aviation-related business ventures at the Mattala Rajapaksa International Airport (MRIA) which will be finalized in a few weeks, Minister of Ports, Shipping, and Aviation Nimal Siripala de Silva said.
Speaking in Parliament recently, he said that they had received the seven EOIs from the private sector. These are being evaluated by the Technical Evaluation Committee, which will make a final announcement in two weeks’ time, he noted.
The focus of calling for EOIs was to utilize the Mattala Airport’s facilities and assets by creating public-private partnership investment opportunities from investors and entrepreneurs engaged in direct and indirect aviation-related enterprises for carrying out aeronautical and non-aeronautical businesses at the airport.
Direct ventures for which EOIs were called include maintenance repair overhaul (MRO), support services, flying schools, fixed based operations (FBO), and long-term aircraft parking, while indirect ventures include the renewable energy industry, resorts/hotels, industrial parks, and logistic services.
Further, the Minister said that from 2017 to 2020, on average, the MRIA had incurred an average loss of Rs. 2 billion annually, which was reduced to Rs. 1.1 billion by 2023 due to more aircraft arriving at the airport and other measures taken.
He said that most Russian tourists arrive at the MRIA at the moment, while it has served as an important alternative airport for aircraft which are turned away from the Katunayake airport due to bad weather conditions, while earlier, the Chennai airport in India served as an alternative to Katunayake.
He said through investment on direct and indirect ventures at the MRIA, it is expected to earn a considerable amount of revenue for the expenses made in 3-4 years’ time.
OSL take:
Sri Lanka’s ongoing programmed to reform state owned enterprises (SOEs) while also looking at revamping underutilized state entities have opened up a host of new business/investment opportunities in the country. With Sri Lanka working towards becoming an emerging business destination in the South Asian region supported by the country’s geographical positioning in the Indian Ocean and the many trade agreements as well as trade concessions enjoyed with other countries, the overall growth and business potential of the country presents many lucrative business/investment opportunities. It is this reason that has resulted in many foreign businesses/investors expressing interest in Sri Lanka’s SOEs marked to be divested or opened for public-private partnerships (PPPs). Since tourist arrivals to the country have shown a steady growth, there is an expansion in the tourism industry as well as in the airport and aviation industries. This and the need to further develop the country’s internal and external connectivity lines have resulted in the government of Sri Lanka paying great attention to the development of infrastructure and supplementary infrastructure facilities related to the airport and aviation industries. Foreign businesses/investors could therefore confidently explore the expanding opportunities in Sri Lanka’s airport and aviation industries as they promise quick returns on investment.
| Article Code : | VBS/AT/20231204/Z_3 |