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SL, India 40 year JV for Mattala Airport

Infra News - Published on Mon, 09 Jul 2018

Image Source: Daily News
Daily FT reported that the Government will enter into a 40-year JV with India to salvage the loss-incurring Mattala Rajapaksa International Airport (MRIA), Parliament was told. Minister of Transport and Civil Aviation Mr Nimal Siripala De Silva, taking part in yesterday’s adjournment debate on the fate of the MRIA, asserted that there was no move to sell the Airport.

Mr De Silva said that “The Mattala Airport has been incurring heavy losses since its inception. Its accumulated loss since it was opened in 2013 is Rs. 20 billion. We need to revitalise this dying Airport, but we cannot do it alone. We need investors. In 2016, I presented a Cabinet paper to this effect to seek international investors to revive the Airport. However, we didn’t receive any favourable response. Then, India offered to help us. So, we are now in discussion with India to enter into a joint venture to revive the MRIA.”

He said that India would most likely control 70% while the Government would control 30%.

He added that “India will control 70% of MRIA. We are still in discussion regarding the conditions of the joint venture. We still need to decide on matters such as future investments.”

Dismissing opposition claims that the deal may result in a threat to national security, the Minister said that India would have no say in security matters.

He further added that “All security matters will be dealt by Sri Lanka. Even the air traffic controller will be under us,” adding that 70% of losses incurred by the Airport would be borne by India through the joint venture.

Source :

Posted By : Nanda Koijam on Mon, 09 Jul 2018
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