India Monitors Sri Lanka’s Mattala Airport Investment Move, May Bid For Project

The Sri Lankan government has invited expressions of interest from domestic and international investors by June 9 for the airport under a 30-year build-operate-transfer (BOT) model.

The development assumes significance as China secured control of the Hambantota port in 2017 under a 99-year lease, raising concerns in New Delhi over its strategic location.

Sources said India is assessing the opportunity as part of efforts to strengthen economic and strategic ties with Sri Lanka following Prime Minister Narendra Modi’s visit to the island nation last April.

The Mattala airport, located about 250 km from Colombo, was commissioned in 2013 at a cost of $209 million, largely funded by China’s Export-Import Bank. Despite modern infrastructure, it has remained underutilised due to low passenger traffic and limited airline operations.

Under the new proposal, investors can participate in two segments — aerodrome operations and landside development. The aerodrome component involves management of airport operations, while the landside component offers development of about 238 hectares under a long-term lease.

Officials said the land can be used for maintenance, repair and overhaul (MRO) facilities, flying schools, logistics parks, solar projects, industrial parks and hospitality ventures. Investors can opt for either or both components.

Sources said the proposal offers flexibility and scope for diversified investment, and is being viewed in India in the context of China’s growing influence in Sri Lanka.

They said an Indian presence in Hambantota would align with India’s “Neighbourhood First” policy and its strategic interests in the Indian Ocean.

The opportunity follows an earlier proposal involving an Indo-Russian joint venture that did not materialise after a change in government in Sri Lanka.

Officials noted that India has recently expanded its presence in Sri Lanka’s maritime sector, with Mazagon Dock Shipbuilders Ltd acquiring a controlling stake in Colombo Dockyard PLC.