India- Russia joint venture bid to manage China-built Mattala airport goes awry

8 November 2024 07:47 am Views - 2284

- Sri Lankan authorities not ready to grant licence for it over legal barriers, states top source

- New government to decide on alternative model for development of the Airport only after General Election

The move initiated by the previous government to hand over the management of the Mattala International Airport to an India-Russia joint venture is poised to be abandoned since Sri Lankan authorities are not ready to grant the licence for it over legal barriers, a top source said.

The last government decided to hand over the management of the Airport jointly to India’s Shaurya Aeronautics Pvt Ltd and Russia’s Airports of Regions. Later, the draft of the commercial agreement was referred to the Attorney General for clearance.

According to the Civil Aviation Authority Act, only Airport and Aviation Services (Pvt) Ltd. (AASL) has the authority to manage the airports in the country.

According to the source familiar with the process, Sri Lanka is not keen to transfer the management of the Mattala airport to a foreign venture. Also, the source said that the company is not keen to proceed with the project and has not even communicated with the Sri Lankan authorities for a long time.

Asked about approval of the Attorney General for the commercial agreement, the source said," It is not required now because the project is now a non-event.

The source said the new government would decide on the alternative model for the development of the Airport only after the general election. The airport was built with financial assistance from China in adjacent to the China built port in Hambantota.