Handing over Mattala airport to Russia and India delayed due to legal issues

24 July 2024 08:32 am Views - 183

• Cabinet has approved a 30-year contract to the Russia-India joint venture

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By Chaturanga Pradeep Samarawickrama

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The transfer of management of the Mattala Rajapaksa International Airport (MRIA) to private companies is being delayed due to legal issues, the Daily Mirror learns.

A recent discussion with Airport and Aviation Services (Sri Lanka) (Private) Limited (AASL) reviewed the progress of this process. A local law firm is providing legal services to the Russian side.  

Five parties expressed interest, and the cabinet approved a 30-year contract to the Russia-India joint venture. The companies involved are Shaurya Aeronautics (Pvt) Ltd of India and Airports of Regions Management Company of Russia.  

Despite receiving cabinet approval for the transfer to a private company, MRIA, funded by China EXIM Bank and opened in 2013, has faced operational challenges, including low flight numbers and environmental concerns.  

As per the cabinet statement, Shaurya Aeronautics (Pvt) Ltd of India and Airports of Regions Management Company of Russia will manage the airport’s operations for 30 years.