The Mattala International Airport was incurring daily losses of Rs. 6–7 million, amounting to nearly Rs. 4 billion annually, President Anura Kumara Dissanayake was informed. 

During a special discussion at the Presidential Secretariat yesterday (15), officials said investment proposals to address the situation have been called and the process is expected to be completed by 2027.

The information was disclosed during the meeting held on the progress of the Ministry of Ports and Civil Aviation during 2026 and budget allocations for 2027. 

Institutions under review included the Sri Lanka Ports Authority (SLPA), Airport and Aviation Services (AASL), Ceylon Shipping Corporation, SriLankan Airlines, SriLankan Catering, the Civil Aviation Authority, Merchant Shipping Secretariat, Port Management and Consultancy Services, and Jaya Container Terminals (JCT).

Officials briefed the President on key development initiatives under the Sri Lanka Ports Development Programme, supported by the World Bank, Asian Development Bank, and Government of India. 

These included the rehabilitation of Kankesanthurai Port, the proposed Logistics Park at Colombo Port, extension of the southern breakwater, the second phase of the Western Container Terminal, and the digitalisation of port operations.

Attention also turned to aviation. A long‑term plan to enhance Bandaranaike International Airport (BIA) aims to meet national aviation needs over the next 30 years, with passenger handling capacity projected to reach 24.2 million by 2055. 

The second phase of the BIA Development Project, due for completion in 2027, includes expansion of arrival and departure terminals, construction of a new terminal building, and depot upgrades. The President stressed the need to streamline passenger transport services around the airport.

Officials further said that collaboration with the Ministry of Digital Affairs is underway to fully digitalise airport services. Development work at domestic airports, including Hingurakgoda, was reviewed, with the President instructing officials to coordinate more effectively with the Sri Lanka Air Force for civil passenger operations.

It was further disclosed that Jaffna International Airport is undergoing upgrades to its passenger terminal and facilities.

President Dissanayake emphasized that all institutions must manage their financial resources effectively, ensuring future development projects contribute to the State Treasury without adding burdens on taxpayers. (Newswire)

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The Ministry of Ports & Civil Aviation has launched a formal drive to attract both local and international investors to Mattala Rajapaksa International Airport (MRIA) in a bid to revitalize the country’s aviation sector and stimulate economic growth in the country’s south. 

According to the Ministry, the Board of Investment of Sri Lanka (BOI) will work with all stakeholders and prospective investors as a facilitator for this important investment opportunity.   

Acting on behalf of Airport and Aviation Services (Sri Lanka) (Private) Limited (AASL), the Ministry has initiated the process of inviting Expressions of Interest (EOIs) covering a wide array of commercial opportunities. 

The EOI call is divided into two segments: Airside/Aerodrome Operations, which covers civil airport operations within the inner perimeter, and Landside Operations, encompassing activities within both the outer and inner perimeters of the airport.

The EOI process is open to both domestic and international entities. Documents can be obtained free of charge on working days between 9.00 a.m. and 2.30 p.m. (Sri Lanka time, GMT +5:30) until 8th June 2026.

Interested parties must submit a request letter on their official letterhead to the Office of the Head of Commercial & Properties, Room No. 35, 2nd Floor, Passenger Terminal Building, Bandaranaike International Airport (BIA), Katunayake, Sri Lanka. Documents may also be downloaded from AASL’s website at www.airport.lk. 

A proposal briefing and site visit to Mattala is scheduled for 22nd May 2026. Prospective investors interested in attending may contact the Head of Marketing and Corporate Communications at AASL for further details. The authority may be reached at Office +94 112264400 or Mobile +94 763963000 / +94 718436057.

The initiative forms part of a broader effort to attract foreign direct investment and elevate Sri Lanka’s profile in the global aviation sector. The Board of Investment (BOI) has been called upon to amplify the opportunity through its official digital channels and international networks, signalling strong inter-agency coordination behind the push.

The Hambantota Airport, a facility with immense untapped potential, has been poised for remarkable growth since its inauguration over a decade ago. Furthermore its offers untapped growth opportunities in exotic tourism development and strategic investment in Airport Operations, Cargo Services, Logistics, MRO, and more.

MRIA’s investment proposition spans a diverse range of sectors, including Cargo Services, Logistics, Maintenance, Repair & Overhaul (MRO) Operations, Aircraft Spares Manufacturing, Industrial Parks for manufacturing, packaging, and warehousing, Renewable Energy projects, and Resort Hotels and Hospitality Services. 

Authorities are positioning the airport’s proximity to the Hambantota Port and major international shipping lanes as a key competitive advantage, enabling integrated air-sea connectivity.

Flexible investment models are on offer, including joint ventures, public-private partnerships, and direct investments, an approach designed to lower barriers and appeal to investors with varying risk appetites and capital commitments. The airport itself boasts modern infrastructure, with advanced runways, passenger terminals, and cargo handling capacity already in place. (Newswire)

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The Department of Wildlife Conservation and the Civil Aviation Authority have signed a Memorandum of Understanding (MoU) aimed at minimizing harm to wildlife around airports while ensuring the efficient operation of Mattala Airport.

The agreement was signed this morning (27) at Mattala Airport by the Director General of Wildlife and the Acting Chairman of the Civil Aviation Authority.

The MoU sets out collaborative measures to reduce wildlife‑related incidents near the airport, safeguard biodiversity, strengthen sustainable practices in airport management, and enhance coordination between aviation authorities and wildlife experts. (Newswire)

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The Mattala Rajapaksa International Airport (MRIA) had been built without a business purpose, Minister of Aviation Bimal Rathnayake said. 

Addressing the media, Minister Rathnayake said that it has become an abandoned airport, due to which the country is facing a large debt. 

Minister Rathnayake said that Sri Lanka is currently facing a US$260 million loan to be paid until 2030. 

“The government is attempting to develop the Mattala Airport into an operational entity, with planes landing and taking off. This is not something that can happen in a year or two. We are currently facing expenditure and loan payments for this airport. Even though it is not a key airport, it is essential as an alternative airport,” he said.

Minister Rathnayake pointed out that the Mattala Airport has turned out to be beneficial to some extent as an alternative airport in Sri Lanka.

The Aviation Minister further revealed that discussions are underway to utilize the airport for other operations, such as plane maintenance, and the land outside the main airport premises for solar projects.

“Until we reach a stage to welcome a high number of passengers, the government is looking at making the airport profitable through other income-generating projects and businesses,” he said. 

Minister of Aviation Bimal Rathnayake made the remarks after engaging in an inspection tour of the Mattala Airport on Thursday. (Newswire)

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The management of the financially burdened Mattala International Airport will soon be entrusted to a joint venture between Russia and India, Minister of Ports, Shipping and Aviation Nimal Siripala de Silva announced. 

Minister Nimal Siripala de Silva said the transfer of management will take place in the next few weeks.

He further said that despite interest from Chinese firms in Sri Lankan airport projects, contractual obligations with Japan stipulate that contracts should be awarded to Japanese companies.  

Commenting on the restructuring of national carrier, SriLankan Airlines, he said the government’s approach involves restructuring the airline rather than selling it outright. 

The minister revealed that under Sri Lankan law, only 49% of SriLankan Airlines’ shares can be transferred to another entity. 

“However, there has been minimal global interest in this opportunity, with only six individuals expressing interest, none of whom were deemed suitable. Even if we were to extend this opportunity to a Sri Lankan entrepreneur, their capabilities would need to be demonstrated,” he added. 

Minister of Ports, Shipping and Aviation Nimal Siripala de Silva made the remarks while addressing a press briefing at the Presidential Media Centre today. (Newswire)

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Cabinet approval has been granted concerning handing over the management of the Mattala Rajapaksa International Airport to selected private companies that have submitted their aspirations for this purpose.

Accordingly, the Cabinet of Ministers approved the proposal presented by the Minister of Ports, Shipping and Aviation to entrust M/s Shaurya Aeronautics (Pvt.) Ltd of India and Airports of Regions Management Company of Russia or its affiliated entrepreneurships with the management of the Mattala Airport.

As per the Cabinet decision, the selected Indian and Russian firms will be entrusted with the management of the Mattala Airport for a period of 30 years as per the recommendations of the negotiation committee appointed by the Cabinet of Ministers. 

According to the government, Cabinet approval was granted at their meeting held in January 2023 to call for aspirations from the parties interested in utilizing the facilities of Mattala Airport. 

Aspirations were called, thereafter, and 05 institutions submitted their aspirations, after which the Cabinet consented to the proposal presented by the Minister of Ports, Shipping and Aviation. (Newswire)

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Losses of the Mahinda Rajapaksa International Airport (MRIA) in Mattala have been reduced to Rs 1.5 billion, Minister of Ports, Shipping and Civil Aviation Nimal Siripala de Silva said.

Addressing the Parliament on Wednesday (Nov 29), the minister said this marks the lowest recorded loss since the airport commenced operations. 

Minister de Silva also revealed that at least seven parties have presented Expressions of Interest (EoIs) for the Mattala Airport. 

The minister said the EoIs have been presented with the aim of transforming the loss-making airport into a profitable venture. 

There have been proposals to establish facilities for assembling and repairing aircraft at the Mattala Airport as well, he added. (NewsWire)

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