The deadline for accepting Expressions of Interest (EOIs) to develop and operate the Mattala Rajapaksa International Airport (MRIA) has been extended by one month to 9 July, after authorities failed to receive any formal proposals despite more than 30 interested parties participating in a pre-proposal meeting.
Deputy Minister of Ports and Civil Aviation Janitha Ruwan Kodithuwakku told The Sunday Morning that the deadline, initially set for 8 June, had been extended to give interested investors more time to submit their proposals.
“We have extended the acceptance window until July to give interested parties an additional month to submit their proposals. While we have not received formal proposals yet, we recently held a pre-proposal meeting where more than 30 interested parties participated,” Kodithuwakku said.
The MRIA, located in Hambantota, opened in March 2013 as Sri Lanka’s second international airport. Built to ease congestion at the Bandaranaike International Airport (BIA) and stimulate economic development in the Southern Province, the facility has struggled with low utilisation for much of its operational history.
The Government has emphasised that the airport’s statutory and regulatory functions will remain under State control, with the EOI process focused solely on attracting partners for commercial and terminal operations.
“Aviation operations will continue to be handled by Airport and Aviation Services (Sri Lanka) Ltd. (AASL). We have not changed the statutory service provider. The Government and AASL will maintain full regulatory control, and we have only invited outside parties to handle operations and commercial activities,” the Deputy Minister explained.
Kodithuwakku said that the investment opportunities on offer covered both the existing airport infrastructure and the vast tracts of underutilised land surrounding the facility.
“We are looking at multiple categories for commercial development. The first scope involves operating the currently developed property, which includes both the passenger terminal and the cargo terminal. There are also investment opportunities for the remaining lands. This includes establishing maintenance, repair, and overhaul facilities as well as flying schools. Additionally, on the landside outside the aerodrome, there are numerous opportunities for developing hotels, recreational activities, and logistics warehouses,” he noted.
According to the Deputy Minister, the Government sees the development of the MRIA as a key component of its long-term economic strategy, particularly regarding tourism and aviation services.
Addressing concerns about national security and airspace management, Kodithuwakku stressed that any private operator would function within an existing regulatory framework overseen by State institutions.
“We act as the statutory service provider through AASL, and our overarching regulator is the Civil Aviation Authority (CAA). The CAA will nominate AASL as the statutory service provider, ensuring we have a complete and robust monitoring mechanism in place. The incoming operator will utilise the existing certification of our national aviation body. Since the operator is only coming in for terminal operations, there is absolutely no possibility of airspace violations or security compromises,” he said.
The ministry expects to move to the next stage of the procurement process shortly after the revised deadline expires.
“We firmly believe we can shortlist the candidates and call for Requests for Proposal (RFPs) within two months after the current phase concludes. We are actively working to finalise this entire process within the current year. We have already provided clear guidelines in the initial documents based on our national policy framework, and we will provide even more streamlined guidelines when issuing the final RFPs,” Kodithuwakku said.
The airport accumulated net losses of Rs. 39.3 billion during the six years leading up to the end of 2024. Audit reports show that operating expenditure in 2024 amounted to Rs. 3.6 billion, while operating revenue stood at only Rs. 242.2 million. The airport also continues to carry annual interest costs of approximately Rs. 2.05 billion on the $ 209 million loan obtained from the Export-Import Bank of China for its construction.