Despite its previous stand regarding privatization of state assets, the government, led by the National People’s Power (NPP), is seeking to call for Expression of Interest (EoI) to open up the Mattala International Airport (MIA) for private investors for operation of its services in different categories, an official said.
The MIA, funded by China EXIM Bank, has stoked controversy since its opening in 2013 due to a low number of flights and persistent financial losses. The successive governments tried to privatize the airport. The previous government tried to hand over the airport to Shaurya Aeronautics (Pvt) Ltd. of India and Airports of Regions Management Company of Russia for 30 years.
However, the move was rescinded later since, under the Civil Aviation Authority Act, certain services cannot be transferred out. Instead, they should be held under the purview of the Civil Aviation Authority of Sri Lanka (CAASL) which is a government entity.
The current NPP government is now trying to seek private sector investments for running airport activities such as passenger management, maintenance and repair and cargo handling.
Asked for a comment, Deputy Minister of Ports and Civil Aviation Janitha Kodituwakku confirmed that a Cabinet paper would be submitted soon seeking approval for EoI to be called for private sector investments in the operation of the airport in different categories. He said even the India – Russia joint venture that was chosen in the past could respond once EoI was called for.
He said the airport is currently used mainly for chartered flights carrying tourists.
“There are no scheduled flights as such. We handle around 150,000 passengers annually,” he said.
Chairman of Civil Aviation Authority (CAA) Sagara Kotakadeniya said that the management of an airport could be opened to the private sector with the consent of the subject minister, but not alienation. He said areas such as security and air traffic control should be with the state entity, and, in this case, the CAASL. (Daily Mirror)
