Business & Economy

Sri Lanka’s International Airport to be Run by Indian & Russian Private Firms

© AP Photo / Sanka GayashanSri Lankan Buddhist monks wait to welcome Sri Lankan President Mahinda Rajapaksa at the Mattala Rajapaksa International Air Port in Mattala, Sri Lanka, Monday, March 18, 2013. Mattala Rajapaksa International Airport, named after Sri Lankan President Mahinda Rajapaksa, was officially opened Monday in his native district of Hambantota, 165 kilometers (102 miles) southeast of the capital, Colombo. (AP Photo/Sanka Gayashan)
Sri Lankan Buddhist monks wait to welcome Sri Lankan President Mahinda Rajapaksa at the Mattala Rajapaksa International Air Port in Mattala, Sri Lanka, Monday, March 18, 2013. Mattala Rajapaksa International Airport, named after Sri Lankan President Mahinda Rajapaksa, was officially opened Monday in his native district of Hambantota, 165 kilometers (102 miles) southeast of the capital, Colombo. (AP Photo/Sanka Gayashan) - Sputnik India, 1920, 26.04.2024
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This move comes as a part of Sri Lanka's efforts to revitalize the airport, which has been underutilized and faced challenges in attracting regular air traffic since its construction in 2013.
Sri Lanka's Cabinet Ministers have approved the proposal to transfer the management of the Mattala Rajapaksa International Airport to private companies from Russia and India, a report by EconomyNext said.
The cabinet spokesperson, Bandula Gunawardena, announced on Friday that a total of five companies had submitted Expressions of Interest.
After careful consideration, the cabinet unanimously approved the decision to award the contract to the Russia-India joint venture on a 30-year contract.
Shaurya Aeronautics Pvt Ltd of India and Airports of Regions Management Company of Russia are set to take over the management of a China-built airport that has faced challenges in attracting regular air traffic.
Despite offering various concessions to international airlines, such as discounts on landing and parking charges, the airport struggled to gain significant traffic.
The involvement of Indian and Russian private firms is expected to bring much-needed expertise and investment to enhance the airport's operations and attract more international flights.
Air India planes are parked at Indira Gandhi International Airport in New Delhi, India, Monday, Aug. 30, 2021 - Sputnik India, 1920, 19.04.2024
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