SRI LANKA WILL HAND MANAGEMENT OF CHINA-BUILT AIRPORT TO INDIA AND RUSSIA COMPANIES

Sri Lanka has decided to entrust the management of its $209 million Chinese-built airport, Mattala Rajapaksa International Airport (MRIA), to two companies from India and Russia. This move aims to mitigate losses incurred by state enterprises in the country. Since its inauguration in 2013, MRIA, funded by China EXIM Bank, has faced criticism due to various issues such as limited flight operations, its environmentally sensitive location, and continuous financial deficits. Under the new arrangement, the management of the airport will be transferred to Shaurya Aeronautics (Pvt) Ltd. of India and Airports of Regions Management Company of Russia for a period of 30 years. However, the specific financial details of the deal were not disclosed in the cabinet statement.

Furthermore, Sri Lanka is in discussions with China EXIM Bank to renegotiate the terms of the loan taken for the airport's construction, as part of a larger effort to restructure its debt obligations, which include funds borrowed for other infrastructure projects. Mattala Rajapaksa International Airport was constructed during the presidency of Mahinda Rajapaksa, who fostered closer ties with China, diverging from the country's traditional ally, India. Notably, the airport is situated in Rajapaksa's hometown, adding a political dimension to its history and management.

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