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The India-Russia joint venture's attempt to take over the management of the China-built Mattala Airport has failed

5 days ago

The India-Russia joint venture's attempt to take over the management of the China-built Mattala Airport has failed

The previous government’s plan to hand over the management of Mattala International Airport to a joint India-Russia venture is likely to be scrapped, as Sri Lankan authorities are unable to grant the necessary licence due to legal obstacles, according to a top source.

The prior administration had intended to transfer control of the airport to India’s Shaurya Aeronautics Pvt Ltd and Russia’s Airports of Regions. The draft commercial agreement was submitted to the Attorney General for review.

However, under the Civil Aviation Authority Act, only Airport and Aviation Services (Pvt) Ltd. (AASL) is authorized to manage airports in Sri Lanka.

The source revealed that Sri Lanka is reluctant to give management control of Mattala Airport to a foreign venture. Furthermore, the joint venture has shown little interest in proceeding with the project and has not communicated with Sri Lankan officials in some time.

Regarding the Attorney General’s approval of the commercial agreement, the source stated, “It is no longer necessary as the project is essentially a non-event.”

The new government is expected to decide on an alternative plan for the airport’s development after the general elections. Mattala Airport was built with financial support from China, located next to the China-funded port in Hambantota.

Source: Daily Mirror