Sri Lanka Seeks Investors for Troubled Mattala Airport Amid Financial Crisis
Sri Lanka seeks investors for loss-making Mattala airport built with Chinese loans
The Economic TimesImage: The Economic Times
Sri Lanka's government is seeking investors for the loss-making Mattala Rajapaksa International Airport, which has struggled to generate revenue since its opening in 2013. The airport, built with Chinese loans, has no regular flights and has been a financial burden, contributing to the country's ongoing economic crisis.
- 01Mattala Rajapaksa International Airport has been financially unviable since its 2013 opening.
- 02The airport has no regular flights and has failed to cover basic operational costs.
- 03Sri Lanka's government is seeking new investors after a previous lease agreement fell through.
- 04The facility is seen as having potential for tourism and strategic investments.
- 05Sri Lanka's financial crisis has led to efforts to privatize unprofitable state-owned enterprises.
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The Sri Lankan government has issued a call for investors to take over the loss-making Mattala Rajapaksa International Airport, located near a wildlife sanctuary on the southern coast. Opened in 2013, the airport has struggled to attract regular flights and has failed to generate enough revenue to cover even its electricity bills. Despite being awarded a 30-year lease to an Indo-Russian joint venture two years ago, the plan never materialized. The airport, named after former president Mahinda Rajapaksa, symbolizes the financial challenges Sri Lanka faces, particularly due to debts incurred from Chinese loans, which contributed to the country defaulting on its $46 billion foreign debt in 2022. The government is now looking for expressions of interest from potential investors, highlighting the airport's untapped potential for tourism and strategic development. However, operational issues, including wildlife interference, have further complicated its viability. The site is also considered an alternate landing destination for flights diverted from Colombo, located just a half-hour away.
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The failure of the Mattala airport to generate revenue affects the local economy and tourism potential, which could lead to job losses and reduced investment in the region.
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