• Airport incurs monthly loss of around Rs. 250–300 m

A proposal to develop the loss-making Mattala Rajapaksa International Airport (MRIA) under Public-Private Partnership (PPP) arrangements has already been submitted to Cabinet and is likely to be taken up at an upcoming Cabinet meeting, Deputy Minister of Ports and Civil Aviation Janitha Ruwan Kodithuwakku told The Sunday Morning.

Responding to a query, Kodithuwakku said the Government would call for Expressions of Interest (EOIs) from private entities to develop the MRIA.

“We have decided to call for EOIs for several sectors, including repair and maintenance, cargo operations, hotel and hospitality services, and a flying school. At least three private entities have already expressed interest in collaborating with the Government to operate facilities at the Mattala Airport. Based on this feedback, we decided to invite EOIs. This is not privatisation of the airport,” he said.

The Deputy Minister said that once Cabinet approval was obtained, EOIs would be called, followed by Requests for Proposal (RFPs). A decision will then be made on the most suitable operational model for the airport.

“To normalise operations and resume regular aircraft movements, a significant investment is required. At present, the Government does not have the capacity to make such an investment. The airport incurs a monthly loss of around Rs. 250–300 million,” he said.

Meanwhile, the National Audit Office (NAO) revealed in January that $ 247.7 million (Rs. 36.56 billion) spent on the construction of MRIA had not been effectively utilised. The airport recorded an operating loss of Rs. 2.12 billion ($ 6.8 million) in 2023, while generating revenue of only Rs. 288 million.

Built to handle one million passengers annually, the MRIA processed just 190,750 passengers over the past six years. Between 2018 and 2023, only 2,182 flights were recorded. According to the NAO, the cumulative net loss after tax during this period amounted to Rs. 38.49 billion ($ 123 million).

The MRIA marked its 12th anniversary this year.