The government has devised a 30-year built-operate-and-transfer (BOT) lease agreement for the underperforming Mattala Rajapaksa International Airport, attracting attention from countries such as India, China, and the United Arab Emirates through a two-pronged approach for development of the airfield and its landside facilities.
This tender, which will close on June 9, 2026, entails strong financial guarantees, as well as possible legal issues, particularly due to overlapping jurisdiction with the Hambantota Port, a leased facility from China.
To manage the 30-year BOT project, bidders face strict requirements, including US $50 million in net worth and five years of ICAO-certified experience.
The tender, which separates airside and landside operations to encourage, respectively, Indian and West Asian and Chinese investment, will see a request for proposals (RFP) issued by late July.
Sri Lanka’s Ministry of Ports and Civil Aviation noted that 47 initial parties have actively shown interest, prominently including well-known state and private firms from the UAE, India, and China. The Mattala airport was originally built using a US$200 million Chinese loan. Chinese state-backed entities are keeping a firm eye on the bids to secure the perimeter surrounding their multi-billion dollar Hambantota maritime investment and to protect their existing economic corridor.
Leading aviation and industrial conglomerates from the Gulf region have actively engaged with the EOI. Driven by volatile geopolitics in West Asia, UAE-based firms are looking to position Mattala as an alternative global supply chain, logistics, and aircraft storage hub.
The Ambassador of the United Arab Emirates to Sri Lanka met with Trade Minister Wasantha Samarasinghe and expressed interest in the Port of Colombo and Sri Lanka’s aviation sector recently.
Unlike previous regimes that only offered passenger operations, the current restructured project offers two flexible investment tracks: Airside/Aerodrome Operations (inner perimeter civil airport operations) and Landside Operations (outer perimeter commercial development).
Investors can bid for one or both segments, with designated opportunities in Maintenance, Repair, and Overhaul (MRO) hubs, cargo logistics, flight training schools, aircraft manufacturing, and hospitality/resort parks, a senior official of the Ports and Aviation Ministry told the Sunday Times Business.
The government intends to finalise a definitive private partner by the end of 2026 to stem the airport’s current operational losses of approximately Rs. 3 billion annually, he pointed out.
Sunday Times
