FINANCIAL CHRONICLE – Top Gulf airlines have not responded to Sri Lanka’s call to utilize the island nation’s Mattala Rajapaksa International Airport (MRIA), according to the Deputy Civil Aviation Minister.
Janitha Ruwan Kodithuwakku stated that the state-run Civil Aviation Authority (CAA) has reached out to Gulf airlines to encourage them to use the airport. “We have informed them to use the airport, but so far, no one has expressed any willingness to do so,” Deputy Minister Kodithuwakku told FINANCIAL CHRONICLE.
He added, “We have informed all airlines to use this airport as needed, taking into account the difficulties they are currently facing. However, there has been no feedback or interest from their side.”
Kodithuwakku explained that the lack of response is largely due to the airlines’ inability to shift their entire operations to Mattala, as these are large airlines. “It is impossible for them to easily shift to Mattala. Mattala is, after all, an airport with a passenger capacity of about 1 million.”
The CAA has also indicated that Sri Lanka is prepared to offer free landing and parking if airlines require refueling and transit services. “Yet, there has been no response to the invitations we sent; they have only expressed appreciation, and that is all,” he noted.
Furthermore, he dismissed media reports concerning a Gulf representative team coming for discussions.
The Mattala Rajapaksa International Airport, often referred to as “the world’s emptiest international airport,” continues to pose a significant financial burden on Sri Lanka, with net losses exceeding Rs. 39 billion over the last six years.
Constructed at a cost of US$209 million, primarily funded through high-interest Chinese loans, the facility was designed to accommodate one million passengers annually. However, it has only managed to attract a fraction of that volume, with expenditures frequently outpacing revenue by nearly 15 times.
The airport incurs substantial annual operational losses due to high overheads and an annual interest cost of Rs. 2.05 billion on foreign debt. Its failure to establish itself as a profitable hub is attributed to its remote location in Hambantota, which is far from the commercial center of Colombo, as well as a lack of consistent scheduled flights.
The financial difficulties persist despite several attempts to revitalize the airport through public-private partnerships (PPP). Sri Lanka recently canceled a 30-year management agreement with an India-Russia joint venture, Shaurya Aeronautics and Airports of Regions, due to legal concerns and U.S. sanctions on the Indian partner.
