FINANCIAL CHRONICLE – Sri Lanka has extended an invitation to foreign investors to manage the Chinese-built airport situated in the southern district of Hambantota, as indicated by a statement from the Board of Investment (BOI).
The Mattala Airport, which has been operating at a loss, is positioned adjacent to the Chinese-operated seaport in Hambantota. The Ministry of Ports & Civil Aviation announced a formal initiative aimed at attracting both local and international investment for the Mattala Rajapaksa International Airport (MRIA).
In its announcement, the Ministry noted, “The Board of Investment of Sri Lanka will collaborate with all stakeholders and potential investors to facilitate this significant investment opportunity.”
The Ministry is currently seeking Expressions of Interest (EOIs) for operations related to both Airside/Aerodrome and Landside activities.
The investment opportunities at MRIA encompass a wide range of sectors, including Cargo Services, Logistics, Maintenance, Repair & Overhaul (MRO) operations, Aircraft Spare Parts Manufacturing, Industrial Parks for manufacturing, packaging, warehousing, Renewable Energy initiatives, and Resort Hotels along with Hospitality Services.
According to the Ministry, the airport’s strategic location near the Hambantota Port and major international shipping routes is being highlighted as a key advantage, facilitating enhanced air-sea connectivity.
This effort is part of a larger strategy to attract foreign direct investment and improve Sri Lanka’s standing in the global aviation market, as stated by the BOI.
Inaugurated in March 2013, the airport serves as the country’s second international gateway. Built at a cost of approximately $209 million, primarily funded through loans from the Export-Import Bank of China, it was intended to drive regional development, foster a logistics hub, stimulate tourism in the southern province, and create a sea-air transshipment link with the nearby Magampura Mahinda Rajapaksa Port.
The Magampura Mahinda Rajapaksa Port is operated by China under a 99-year lease agreement. The airport was designed to accommodate up to one million passengers annually and features a 3,500-meter runway capable of servicing large aircraft such as the Airbus A380.
Despite its advanced infrastructure, MRIA has faced significant financial difficulties since its opening, earning the reputation of being the world’s least utilized international airport.
To address these losses, the Sri Lankan government had previously established a management agreement with a joint venture involving Indian and Russian firms under a 30-year lease to enhance profitability through transit flights and specialized cargo operations. However, this agreement was later annulled after the U.S. State Department placed both the Indian and Russian firms on a blacklist.
The BOI has indicated that various flexible investment models are available, including joint ventures, public-private partnerships, and direct investments, designed to reduce entry barriers and attract investors with different risk profiles and capital capacities.
The EOI process is accessible to both domestic and international parties. Interested entities can obtain the necessary documents free of charge from Sri Lanka’s primary airport in Katunayake or download them from the AASL’s official website at www.airport.lk. (Colombo/May 12/2026)
