The government revealed the reason for not developing the Mattala Airport ~ Gossip Lanka Hot News | lankahotnews.com | Sri Lanka Gossip News

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The government has dropped the idea of developing the Mattala Mahinda Rajapaksa International Airport as its management is not a profitable business for the Airports and Aviation Services Limited due to a number of reasons, the company’s chairman, Engineer Atula Galkatiya, revealed.

Galkatiya said the government had held several discussions with airports and airlines to mitigate these losses, including inviting expressions of interest (EOI) from investors to develop Mattala Airport.

In 2023, the airport and airlines have issued an Expression of Interest (EOI) for the development of the airport, subject to approval by the Council of Ministers.

The contract awarded allows the company to remain as operator, as required by regulations, and hand over operations to investors.

Under this, a joint venture between India’s Shaurya Aeronautics Ltd and Russia’s Regional Airport Management Company was awarded a 30-year management contract for the development and operation of the Mattala Mahinda Rajapaksa International Airport.

According to Airports and Aviation Ltd, neither the government nor Airports and Aviation Ltd will incur any costs for the Mattala Mahinda Rajapaksa International Airport during the three-year concession period allotted for its development, and these costs will be borne by investors.

The scheme is expected to save about Rs 300 crore for the government and airports and airlines.

In addition, after the three-year development period, the investors will donate a certain percentage of the airport’s revenue to the Airport and Airlines Company Limited.

Engineer Galketi clarified that Shaurya Aeronautics and the regional airport were working on development projects aimed at making the Mattala Mahinda Rajapaksa International Airport a profitable business.

He said the management agreement was expected to bring more benefits to Sri Lanka’s aviation industry by attracting more flights to Mattala, thereby increasing boarding tax and other tax revenues.

In addition, Airport and Aviation Services Ltd. will also provide investors with approximately 700 hectares of land.

Mattala Mahinda Rajapaksa International Airport was established in 2013 and is operated by Airports and Aviation Limited, a company appointed by the Civil Aviation Authority, the operator of all airports in Sri Lanka.

However, the revenue loss of Mattala Mahinda Rajapaksa International Airport from 2013 to 2023 is about Rs60 billion.

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