Categories: Headlines

LNP – India- Russia joint venture bid to manage China-built Mattala airport goes away

The move initiated by the previous government to hand over the management of the Mattala International Airport to an India-Russia joint venture is poised to be abandoned since Sri Lankan authorities are not ready to grant the licence for it over legal barriers, a top source said.

The last government decided to hand over the management of the Airport jointly to India’s Shaurya Aeronautics Pvt Ltd and Russia’s Airports of Regions. Later, the draft of the commercial agreement was referred to the Attorney General for clearance.

According to the Civil Aviation Authority Act, only Airport and Aviation Services (Pvt) Ltd. (AASL) has the authority to manage the airports in the country.

According to the source familiar with the process, Sri Lanka is not keen to transfer the management of the Mattala airport to a foreign venture. Also, the source said that the company is not keen to proceed with the project and has not even communicated with the Sri Lankan authorities for a long time.

Asked about approval of the Attorney General for the commercial agreement, the source said,” It is not required now because the project is now a non-event.

The source said the new government would decide on the alternative model for the development of the Airport only after the general election. The airport was built with financial assistance from China in adjacent to the China built port in Hambantota.

AddThis Website Tools
Tyronne Jayamanne

Recent Posts

LNP – Generator at Norochcholai to be shut for maintenance

The Ceylon Electricity Board (CEB) said the third generator at the Norochcholai coal power plant…

4 hours ago

LNP – Oil soars more than 6% after Israel’s strike on Iran alarms market

Oil prices jumped more than $4 a barrel on Friday, hitting their highest price in…

4 hours ago

LNP – IMF highlights 15% electricity tariff hike as key step for $344M tranche

The International Monetary Fund (IMF) has acknowledged Sri Lanka’s continued progress under its economic reform…

5 hours ago

LNP – SriLankan Airlines announcement on European route adjustments

SriLankan Airlines has announced temporary adjustments to its European flight routes due to the closure…

5 hours ago

LNP – ITAK secures power in Jaffna Municipal Council

The Ilankai Tamil Arasu Kachchi (ITAK) has secured a majority in the Jaffna Municipal Council,…

5 hours ago

LNP – At least 20 feared dead in Air India flight crash in Ahmedabad

At least 20 passengers have been feared dead in the deadly crash near Ahmedabad airport,…

1 day ago