Govt. prioritises operationalising loss-making Mattala Airport ahead of privatisation plans

By Nishel Fernando  

The government is shifting its immediate strategy for the Mattala Rajapaksa International Airport, prioritising making the facility fully operational before committing to a specific privatisation or public-private partnership model.  

Speaking at a recent press briefing in Colombo yesterday, Deputy Minister of Tourism Prof. Ruwan Ranasinghe and Sri Lanka Tourism Development Authority (SLTDA) Chairman Buddhika Hewawasam emphasized that the primary focus is to revive operations at the underutilised airport to demonstrate its working viability. The officials highlighted the ongoing extension of the highway network towards Batticaloa as a critical factor that will enhance regional connectivity and make the airport a more attractive proposition for future investors or operators. By establishing a steady flow of operations first, the government believes it can secure a more sustainable and profitable long-term management arrangement. 

As part of this operational revival, Prof. Ranasinghe stressed that the national carrier, SriLankan Airlines, would need to play a role in generating initial flight traffic. This approach comes despite past financial controversies, where the national carrier reportedly lost an estimated US$ 30 million annually when it was previously mandated to route flights through the southern airport. While acknowledging the technical and financial calculations of past airline losses, the authorities stressed that looking at the broader economic picture requires the airport to be functional to unlock its actual value.  

Once the airport is successfully brought into steady operation, the government plans to evaluate various long-term management strategies. These potential models include a public-private partnership, continued government oversight, or a complete handover to private sector management.   

While the airport has been advertised for privatization several times in the past—including previous advanced discussions regarding a joint venture involving Russian and Indian entities—the government’s immediate mandate remains strictly focused on ensuring the facility is active and operational on the ground.