Nearly 40 investors eye partnership for Mattala Airport

The Government has attracted strong investor interest in its bid to transform the loss-making Mattala Rajapaksa International Airport (MRIA) into a commercially viable venture, with around 35 to 40 parties expressing interest in partnering with the State to operate the airport as a joint venture.

Civil Aviation Deputy Minister Janitha Ruwan Kodithuwakku said the level of interest marks a significant improvement over the previous Expression of Interest (EOI) process, which drew only one or two interested parties. 

“Around 35 to 40 prospective investors have participated in preliminary discussions over the past few months. However, the final number will be confirmed once official proposals are received after the submission deadline,” he said.

Since April this year, the Government has invited local and international investors to submit proposals to develop and operate the underutilised MRIA by June in a renewed push to unlock value from the Hambantota-based facility. 

The call for Expressions of Interest (EOIs), issued by the Ports and Civil Aviation Ministry on behalf of Airport and Aviation Services Sri Lanka Ltd., (AASL), sought investment partners to utilise airport resources across both operational and commercial segments. A Cabinet Appointed Negotiation Committee (CANC) has been tasked with managing the process, including evaluating submissions and shortlisting qualified parties for the next stage of Request for Proposals (RFPs) (https://www.ft.lk/front-page/Govt-seeks-EOIs-to-revive-Mattala-Airport-by-June/44-791127).

In June, the Government extended the EOI submission deadline by one month, with proposals now due by 9 July, while EOI documents will be available until 8 July. The original closing date for submissions was 9 June (https://www.ft.lk/front-page/Govt--extends-deadline-for-Mattala-Airport-investment-proposals-till-9-July/44-793323). 

Kodithuwakku attributed the heightened investor interest to extensive improvements carried out at the airport over the past year. 

He said the airport had been in poor condition when the Government took office, with damaged elephant fences and wild animals roaming the premises, making flight operations unsafe.

The Deputy Minister said the Government has since completed essential renovations, established a wildlife office and secured a wildlife-free certification, enabling MRIA to function as a fully operational airport.

The Government is seeking a strategic partner after bringing the airport to a safe operational standard, with the next objective being to improve its commercial performance. The Deputy Minister has previously revealed that MRIA has been incurring annual losses of around Rs. 3 billion, roughly equivalent to its operating costs since its inception.

Built in Hambantota to ease congestion at Bandaranaike International Airport (BIA) and promote regional development, MRIA has the capacity to handle around one million passengers annually. 

A notable turnaround was recorded at lMRIA last year, which posted its highest-ever passenger movements since opening in 2013. The airport handled 140,614 passengers in 2025 and accommodated 703 international flights, according to the Ports and Civil Aviation Ministry.

Officials said passenger numbers at Mattala have increased steadily over the past three years, with renewed attention following the appointment of the new Government playing a decisive role. 

Previously, airlines had been reluctant to operate at Mattala due to safety concerns linked to wildlife in the surrounding area. Several international carriers launched services to Mattala during 2025, expanding links with Europe, the Middle East, and South Asia. These included Red Wings from Russia, SkyUp operating routes linked to Bahrain and Pakistan, Fly One from Dubai, Centrum Air and Uzbekistan Airways from Uzbekistan, and Bulgaria Air. Belavia Airlines of Belarus is also scheduled to commence flights, marking the first direct connection between Minsk and southern Sri Lanka (https://www.ft.lk/front-page/Sri-Lanka-s-airports-post-strongest-year-since-crisis-as-traffic-airlines-and-regional-hubs-gain-momentum/44-788392).