Sri Lanka is set to hand over the management of Mattala Rajapaksa International Airport to a joint venture between India and Russia in the coming weeks, announced Minister of Aviation Nimal Siripala de Silva. The India-Russia partnership, awarded in April, will run the airport located in Hambantota, Southern Sri Lanka. This facility, which cost USD 209 million to build, was once dubbed the “world’s emptiest airport” due to its lack of flights.

The decision to involve an India-Russia joint venture comes after the Sri Lankan Cabinet approved the call for Expressions of Interest in January, receiving five proposals. The chosen partnership, Shaurya Aeronautics Pvt. Ltd. of India and Airports of Regions Management Company of Russia, will manage the airport under a 30-year contract.

Mattala Airport, named after former President Mahinda Rajapaksa, was a key project during his decade-long rule. Despite its high costs, primarily funded by a USD 190 million high-interest loan from China’s Exim Bank, the airport has struggled financially since its opening in 2013. The government has sought commercial partners to take over operations since 2016 to curb the losses.

Minister de Silva highlighted the importance of this new management strategy in reviving the airport’s fortunes. The airport is strategically located near major industrial and educational hubs in Southern Sri Lanka and has the potential to become a significant regional aviation hub under effective management.

Additionally, Minister de Silva mentioned the ongoing development of the Kankesanthurai port in northern Sri Lanka, supported by a USD 69 million investment from India. This project aims to enhance the port's infrastructure and boost maritime trade capabilities.

The minister also touched upon the future of SriLankan Airlines, stating that the government prefers a strategic restructuring over privatization. Regulatory constraints limit the sale of more than 49% of the airline’s shares to external investors. Thus, the government is committed to revitalizing the national carrier through a comprehensive restructuring plan.

This move to hand over Mattala Airport to a joint venture between India and Russia marks a significant step in Sri Lanka’s efforts to manage its large-scale infrastructure projects more efficiently and drive economic growth through enhanced connectivity and trade.