Team Blitz India
Aconsortium of Indian and Russian firms has secured the management rights for Sri Lanka’s Mattala Rajapaksa International Airport, situated near the Hambantota port on the southern coast. This USD 209 million facility, named after former president Mahinda Rajapaksa, is set for a promising future under its new management.
While the Mattala Airport stood as a crucial infrastructure endeavour during Rajapaksa’s leadership, it encountered staggering financial difficulties. Its sparse flight activity earned it the moniker of the ‘world’s emptiest airport.’ These financial woes were further compounded by its construction being financed primarily through high-interest Chinese commercial loans, notably from the Exim Bank of China.
The decision to entrust the airport’s management to Shaurya Aeronautics (Pvt) Ltd of India and Airports of Regions Management Company of Russia followed the Sri Lankan Cabinet’s approval for Expression of Interest from potential stakeholders on January 9. Out of the five proposals received, a consultative committee recommended a 30-year management contract for the joint venture, which was subsequently approved by the Cabinet.
Meanwhile, Sri Lanka is in discussions with the Exim Bank of China to explore restructuring options for the loan associated with the airport, aiming to ensure its sustainable development and operational viability in the long term.
This collaboration marks the second India-Russia joint venture in India’s neighbouring regions, following the Rooppur nuclear power plant project in Bangladesh. While Russia handles the construction, India’s role extends to providing training for local personnel and logistical support.
