Around 35 to 40 parties have indicated interest in the Government’s plan to secure a joint venture partner for Mattala Rajapaksa International Airport (MRIA), with the exact number to be known once formal proposals are submitted, The Daily Morning learns.

Speaking to The Daily Morning yesterday (28), Deputy Civil Aviation Minister Janitha Ruwan Kodithuwakku said the level of interest shown by prospective parties was significantly higher than during the previous Expressions of Interest (EOI) process conducted under the former Government.

“There were around 35 to 40 parties that attended the pre-brief meetings in recent months. During the last EOI process under the previous Government, only one or two parties showed interest. This time, around 40 have indicated that they are interested, although we will know the exact number once the proposals are received. The deadline for the submissions has not yet ended,” he said.

Kodithuwakku also said the Airport had undergone a significant transformation over the past year, making it far more attractive to potential investors.”When we assumed office, the MRIA had almost turned into a jungle. Elephant fences had been damaged, wildlife was moving within the airport premises and flight operations could not be carried out safely. During the past year, we completed the required renovations, established a wildlife office and obtained certification confirming that the airport is free from wildlife risks. It has now been converted into a fully operational airport,” he said.

Earlier this year, the Government invited EOIs from interested parties as part of plans to identify a joint venture partner to operate MRIA and steer the airport towards profitability. Speaking previously to The Daily Morning, Kodithuwakku said that the Airport had failed to generate the expected returns since its establishment and continued to incur annual losses of around Rs. 3 billion, roughly equivalent to its operating costs. He said that after restoring the Airport to a condition suitable for safe operations, the Government’s focus had shifted towards making the facility commercially viable. Although MRIA has the capacity to handle around one million passengers annually, he said that its highest passenger throughput was recorded only in 2025, when approximately 150,000 passengers travelled through the airport.

MRIA, located in Hambantota, has long been the subject of debate due to its low utilisation and high maintenance costs despite being built to ease congestion at Bandaranaike International Airport and promote regional development.

U.S. Assistant Secretary of State for South and Central Asian Affairs S. Paul Kapur called on Sri Lanka President Anura Kumara Dissanayake in Colombo.

In a X statement following the meeting, Kapur said that the discussions centered on advancing maritime security cooperation, unlocking trade and investment opportunities.

Kapur emphasized the growing partnership between the two nations, highlighting shared efforts to enhance cooperation in the strategically vital Indo-Pacific region.

Colombo High Court Judge Manjula Thilakaratne today rejected the appeal filed by Bodu Bala Sena General Secretary Ven. Galagodaaththe Gnanasara Thera and upheld the nine-month rigorous imprisonment sentence imposed by the Colombo Magistrate’s Court.

The appeal sought to overturn his conviction and secure an acquittal in connection with charges of making statements allegedly insulting the Islamic faith at a media briefing held in Kirulapone in 2016, which were deemed to have been prejudicial to communal harmony.

Following trial proceedings, the Colombo Magistrate’s Court had earlier found him guilty and sentenced him to nine months of rigorous imprisonment.

US Assistant Secretary of State for South and Central Asian Affairs S. Paul Kapur arrived today in Colombo on a three-day visit from June 21 to June 24.

While in Sri Lanka, Assistant Secretary Kapur will meet with senior government leaders, private sector executives, and representatives of U.S. companies to discuss expanding bilateral trade and investment, strengthening security cooperation, and advancing shared priorities in the region.

The visit reflects President Trump’s commitment to strengthening partnerships that advance American prosperity and security, while deepening cooperation with Sri Lanka as a key Indian Ocean partner.

India has signalled its readiness to fast-track an upgrade of the 26-year-old India-Sri Lanka Free Trade Agreement (ISFTA) in a move that could significantly expand Sri Lanka’s export, investment, and services opportunities at a time when the island is seeking new growth drivers amid its economic recovery.

The Daily FT learns that the neighbouring economic powerhouse has conveyed its openness to accelerating discussions on an enhanced agreement and is awaiting the outcome of a newly appointed Sri Lankan task force reviewing the matter.

Sources familiar with the discussions said an upgraded pact would be more beneficial to Sri Lanka than India, pointing to the significant growth in Sri Lankan exports to India, from around $ 50 million in 2000 to over $ 1 billion in 2025 following the implementation of the ISFTA.

The ISFTA, signed in 1998 and operational since March 2000, was Sri Lanka’s first bilateral FTA and provides duty-free access for over 4,000 product lines to the Indian market. However, it is limited to trade in goods, with both countries having long explored a deeper economic partnership including services, investments, and technology cooperation.

According to sources, India’s key priorities in any upgraded agreement are the removal of non-tariff barriers and the strengthening of rules of origin.

India is also keen to include trade in services as a core component of a revised framework, although it is not seeking the opening of any specific sectors in Sri Lanka.

Discussions have included revisiting existing value-addition requirements and adopting more product-specific rules of origin similar to those found in India’s agreements with major trading partners like the US and Canada.

It was also noted that an upgraded agreement could boost Sri Lanka’s ambition of becoming an export and logistics hub linking India with the Middle East and Africa. The proposal also aligns with broader regional connectivity initiatives, including discussions on a Sri Lanka-India-Japan economic corridor.

A study on the proposed export-oriented industrial corridor has estimated that such an initiative could lift Sri Lanka’s economic growth by as much as 9.3% by 2030.

During the past six years, India has signed nine FTAs with large, developed, and consuming economies. Of these, three were singled this year including the India-EU FTA, India-US Interim Trade Framework, and India-New Zealand FTA.

The latest push comes against the backdrop of decades of efforts to deepen bilateral economic integration with Sri Lanka. A proposed Comprehensive Economic Partnership Agreement (CEPA), finalised in 2008, sought to expand the ISFTA into services, investment, and technology transfer, but failed to materialise due to domestic opposition and concerns among Sri Lankan industry groups. Subsequent efforts to negotiate an Economic and Technological Cooperation Agreement (ETCA) similarly stalled amid political resistance.

Analysts contend that while Asian economies are increasingly pursuing deeper regional integration and supply chain partnerships, Sri Lanka has lagged in advancing major trade agreements.

They argue that a carefully negotiated upgrade of the ISFTA could provide the country with greater market access, attract export-oriented investments, and position it more effectively within emerging regional value chains, provided concerns over competitiveness and implementation are adequately addressed.