Indian and Russian Companies to Jointly Manage Sri Lanka's Mattala Rajapaksa International Airport
Introduction to the Joint Management of Mattala Airport
An Indian company, Shaurya Aeronautics (Pvt) Ltd, and a Russian firm, Airports of Regions Management Company, have been selected to jointly manage Sri Lanka's Mattala Rajapaksa International Airport for the next 30 years. This collaboration marks a significant step in international cooperation for aviation management in Sri Lanka and represents a concerted effort to revitalize a struggling airport that has faced numerous challenges since its inception.
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| Indian and Russian companies will jointly manage Sri Lanka's Mattala Airport. |
Background and Context
The proposal to entrust the management of Mattala Airport to these two companies was submitted to the Cabinet by Sri Lanka's Ports, Shipping, and Aviation Minister, Nimal Siripala de Silva. The Cabinet approved the transfer of management responsibilities to the selected Indian and Russian companies. This decision aligns with the recommendations made by the Negotiating Committee appointed by the Cabinet of Ministers of Sri Lanka.
The Mattala Rajapaksa International Airport, once described as "the world's emptiest airport," was built at a cost of $209 million. It is located near Hambantota, where China operates a port on lease. The airport was a significant infrastructure project during Mahinda Rajapaksa's nearly decade-long rule of the island nation but faced several operational challenges, including minimal flights and environmental concerns.
Joint Management Plan and Expected Benefits
The joint management plan between Shaurya Aeronautics and Airports of Regions Management Company aims to revitalize the Mattala airport and improve its operational efficiency. The partnership is expected to bring in expertise and investment to turn around the airport's fortunes, helping it become a viable and sustainable enterprise.
The airport has been incurring significant losses, prompting the Sri Lankan government to seek commercial partners for its management since 2016. By entrusting the management to Indian and Russian companies, Sri Lanka hopes to leverage their experience in aviation to make the airport profitable and contribute to the local economy.
Additional Challenges and Opportunities
Despite the potential benefits of this joint venture, the Mattala airport has faced substantial challenges. It was built with financing from the Export-Import Bank of China, and since its opening in 2013, it has struggled with low traffic and financial sustainability. Sri Lanka is in discussions with the Export-Import Bank of China to restructure the debt associated with the airport, which will be crucial for its long-term success.
The collaboration between Indian and Russian companies to manage Mattala airport is the second joint project between the two countries in India's neighborhood, following the Rooppur Nuclear Power Plant in Bangladesh. This partnership may pave the way for future cooperation in other sectors and further strengthen ties between India, Russia, and Sri Lanka.
Conclusion
The joint management of Sri Lanka's Mattala Rajapaksa International Airport by Indian and Russian companies represents a significant effort to turn around the airport's fortunes and establish it as a successful enterprise. With a 30-year management agreement, the partnership aims to bring in expertise, investment, and operational efficiencies to revitalize the airport. As the collaboration moves forward, it is expected to boost the local economy, improve the airport's financial sustainability, and contribute to the overall development of Sri Lanka's aviation sector.
