The Government aims to convert the Mattala Rajapaksa International Airport (MRIA) into an aircraft maintenance hub, Minister of Ports, Shipping and Aviation Bimal Rathnayake told Parliament.
“Rs. 36.5 billion was spent to build the airport. The airport has incurred a total loss of Rs. 38.5 billion over the past five years,” Rathnayake said during the committee stage debate on the Budget.
“Our goal is to turn this into a profitable entity,” he said.
“We will look into this today, March 9. We held discussions with prominent foreign engineering companies. We have the green light to move forward,” he said.
The previous Cabinet approved a proposal made by the then Minister of Ports, Shipping and Aviation to transfer the management of the Mattala Rajapaksa International Airport to M/s Shaurya Aeronautics (Pvt) Ltd and Airports of Regions Management Company of Russia or its joint venture for 30 years in April 2024.
However, in November 2024, the United States imposed sanctions on Shaurya Aeronautics due to its involvement in supplying Russia with advanced technology, impacting the management agreement.
The loss-making airport, built with Chinese funds and opened in 2013, was once dubbed the “World’s emptiest airport.”
Restoring cost-recovery electricity pricing without delay is needed to contain fiscal risks from State-owned Enterprises, the International Monetary Fund reiterated last week.
Since receiving an IMF bailout in 2023, Sri Lanka has sought to privatise a host of loss-making State-owned Enterprises.
“A key requirement to reduce future financial risk emanating from SOEs is to improve SOE governance. Towards this end, a holding company under the full control of the Government will be set up under which selected SOEs are held as subsidiaries to improve governance, financial discipline and operational efficiency,” President Anura Kumara Dissanayake said during his Budget Speech.
