The Sri Lankan government is seeking fresh investment to manage the Mattala Rajapaksa International Airport and establish direct and indirect aviation-related businesses there. This initiative includes a renewed consideration of a joint Indian-Russian venture proposal. The plan is reportedly structured to operate under seven distinct divisions.
This move follows a previous Cabinet decision in April of last year to grant Indian and Russian companies control of the Mattala airport for 30 years.
Meanwhile, recent disclosures have revealed a concerning financial situation for the national carrier, Sri Lankan Airlines. According to the Chairman of the Committee on Public Finance, Dr. Harsha de Silva, 31 out of the airline’s 45 destinations are currently loss-making. Sri Lankan Airlines incurred a loss of 3.4 billion Rupees in the first quarter of this year, despite a decrease in both passenger revenue and fuel costs.
Further details indicate that the airline is burdened with $978 million in liabilities and 51 billion Rupees in domestic debt. Additionally, approximately $200 million in outstanding interest payments led to a recent bond restructuring.
This parallel development of seeking new investment for Mattala Airport while grappling with significant losses at Sri Lankan Airlines raises questions about the future of aviation in the country.
