In a bid to tackle financial losses and environmental hurdles, Sri Lanka has delegated the management of Mattala Rajapaksa International Airport (MRIA) to Indian and Russian companies. The decision highlights the government’s strategy to privatize struggling state-owned enterprises amidst an escalating financial crisis.
Since its construction in 2013 adjacent to a wildlife sanctuary with a loan from China, the airport has grappled with operational challenges, including low flight frequencies and persistent financial deficits. Named after former President Mahinda Rajapaksa, the airport’s activities halted following his electoral defeat in 2015, further exacerbating government losses.
India’s Shaurya Aeronautics Pvt. Ltd. and Russia’s Airports of Region Management Company will assume management responsibilities for the next three decades, following a cabinet decision that did not disclose the deal’s financial particulars. The discontinuation of Flydubai’s operations in June 2018 due to insufficient passenger traffic compounded the airport’s financial woes.
Sri Lanka’s economic struggles have been compounded by its indebtedness to China, culminating in a foreign debt default in 2023. Concerns about Beijing’s influence through “debt traps” were heightened following the government’s decision in 2017 to lease the nearby port at Hambantota to China Merchants Port Holdings for 99 years.
Situated along a migratory bird route, the airport has encountered safety hazards, with multiple incidents of aircraft being grounded due to bird strikes. By entrusting management to Indian and Russian entities, Sri Lanka aims to tackle the operational and financial challenges confronting the airport amidst broader economic uncertainties.
