Sri Lanka opens fresh bids for Mattala Airport to stem Rs. 3 Billion annual loss

By Darshana Sanjeewa Balasuriya  

Airport and Aviation Services (Sri Lanka) (Private) Limited (AASL) has called for Expressions of Interest (EOI) from both local and international investors for the development and operation of the Mattala Rajapaksa International Airport (MRIA).   
The initiative seeks to capitalise on the airport’s extensive 600-hectare land area, opening the door for a broader range of investment opportunities. The move comes after a recent Cabinet decision to cancel a previous bidding process launched by the former administration, which had focused mainly on passenger operations.   
Authorities have now opted for a more diversified development strategy.Under the new framework, MRIA is being positioned as a multi-functional hub with potential investments in cargo and logistics operations, maintenance, repair and overhaul (MRO) facilities, and aircraft spare parts manufacturing.   
Plans also include the establishment of industrial zones for manufacturing, packaging and warehousing.  
In addition to aviation-related activities, the proposal highlights opportunities in renewable energy, tourism and hospitality sectors. This includes the development of resort hotels and related services, taking advantage of the airport’s location in the southern region of the country.  
The previous government also unsuccessfully tried to transfer the management for the $209 million Chinese-funded airport to two foreign companies, including one Indian.   
The International airport was constructed with financing from China EXIM Bank.Currently, it is used for chartered flight operations for tourism only.  
Currently, MRIA incurs an annual loss of approximately Rs. 3 billion. Although the airport recorded around 150,000 travelers in 2025, passenger numbers remain well below its one million capacity.