Sri Lanka selects investor to manage Mattala International Airport in Hambantota
The Morning: The Cabinet-appointed tender committee has selected an investor to manage the loss-making Mattala Rajapaksa International Airport (MRIA) in Hambantota, the Ministry of Ports, Shipping, and Aviation reveals.
Speaking to The Sunday Morning Business, Minister of Ports, Shipping, and Aviation Nimal Siripala de Silva said that the Cabinet-appointed tender committee had selected an investor from among the parties which had expressed an intention to manage the MRIA.
Accordingly, the selection has been forwarded to the Cabinet of Ministers for approval.
He stated that approval by the Cabinet had been delayed due to a request made by the Treasury seeking time to file its observations.
“The Cabinet has not approved it yet. The Treasury wanted more time to file its observations,” he said.
De Silva refused to reveal the identity of the selected investor on the grounds that it was inappropriate to reveal it at this juncture.
It has been reported that at least seven parties have expressed interest in maintaining the MRIA, which will be given out on a 30-year management contract.
According to the National Audit Office (NAO), over the period 2017-2022, the MRIA has accumulated losses of over Rs. 42.81 billion, with a loss of Rs. 22.221 billion recorded in 2022 alone.
However, speaking in Parliament on 29 November 2023, the Minister of Ports, Shipping, and Aviation claimed that the loss recorded by the MRIA over the first 11 months of 2023 had fallen to Rs. 1.5 billion.
OSL take:
The growing business/investment opportunities in Sri Lanka have presented new opportunities for foreign businesses/investors. Some of the key economic sectors that have seen a growth include tourism, trade, airport and aviation industries. The Sri Lankan government’s decision to develop and uplift regional airports in the country in a bid the improve connectivity to support trade and tourism has presented business/investment opportunities for foreign businesses/investors to engage in the development of Sri Lanka’s regional airport network. It is in such a backdrop that the government is looking at outsourcing the management of the Mattala International Airport to a foreign company. Similar opportunities are available in other regional airports that are currently undergoing expansion programmes. The ongoing economic activities in the country and Sri Lanka’s target of becoming a regional hub are indicative of the the country’s growth and business potential in Sri Lanka. Foreign businesses/investors could therefore confidently explore the expanding business/investment opportunities in Sri Lanka’s airport and aviation industry.