Mon, Sep 26, 2016, 11:03 am SL Time, ColomboPage News Desk, Sri Lanka.

Sept 26, Colombo: Seven aviation related firms, mainly Europe-based companies have expressed interest in utilizing Sri Lanka's Mattala Rajapaksa International Airport (MRIA) in Hambantota, which has been dubbed as the world's emptiest airport, a media report said.

The Transport and Civil Aviation Ministry in June called for Expressions of Interest (EOI) from investors to undertake investments and commercial operations of the country's second international airport. The submissions of EOIs were closed last month.

Airport and Aviation Services Ltd Executive Director Johanne Jayaratne told the Business Times that they were going through the short listing process and the Technical Evaluation Committee will provide the Cabinet Appointed Negotiating Committee the shortlisted recommendations.

Following the completion of the process the shortlisted parties will be called next month to submit their proposals, the official has said.

Sri Lanka is on the brink of sealing a deal with Chinese and Dubai based airlines and infrastructure companies to run the operations of the loss making Mattala International Airport in Hambantota.

Minister Samarawickrama said that there were several other bids as well. “I am confidence that there would be a positive message soon. We will look at offering them a 70% stake,” he said.

He said that the Request for Proposals for SriLankan Airlines too has been completed and a decision of the new player would be announced soon. He also said that a US based investment company too was very serious on SriLankan Airlines bid.

“We will have to settle all debts of the national airline and offer it to the new party as there would not be any party to operate the airline with huge losses.” Asked by Daily News Business if Sri Lanka could run it, he answered in the negative. “This was tried before and it failed,” he said.

Samarawickrama also said that the Volkswagen car assembly plant project in Kurunegala is still on and the ‘land issue’ too has been cleared. (SS)

October 14, 2016, 10:37 pm

Prime Minister Ranil Wickremesinghe said yesterday that the Hambantota Port and Mattala Airport would be run as Public-Private Partnerships(PPPs) with Chinese Companies.

Addressing the convention of the Institution of Engineers in Colombo, the Prime Minister revealed that the sale of Hambantota Port would bring in USD one billion for the country.

"We are also working on a PPP with another Chinese Company for Hambantota Airport. As a result, a further amount would accrue to the country’s official reserves," he added.

Wickremesinghe said that both transactions would constitute non-debt creating FDI inflows which would help increase unencumbered official reserves significantly and have a more favourable impact on stabilising the exchange and interest rates than building up reserves using borrowed sources.

The increased reserves could also serve as a useful cushion in the context of the expected increase in US interest rates and other Global Financial Market Development, he noted.

A Boeing P-8A Poseidon US patrol aircraft visits Sri Lanka's China built airport

An advanced US long-range surveillance aircraft has visited Sri Lanka's Mattala Airport in the south which could soon be given to a Chinese firm to operate, as part of exercises to safeguard international shipping lanes.

Poseidon aircraft based on a Boeing 737 platform have advanced surveillance, anti submarine warfare and electronic intelligence capabilities

The aircraft had arrived in Colombo on December 04 and departed from the Mattala Rajapaksa International Airport in Hambantota following exercises with Sri Lanka's Navy and Air Force.

The Mattala Airport was built by China on a semi-commercial loan and Sri Lanka is in talks with China to get a Chinese firm to partner to run it or buy a stake.

Sri Lanka has already struck a deal to sell nearby Hambantota port to China.

The US embassy in Colombo said the exercises with Sri Lanka's military were aimed at "safe-guarding the international shipping lanes that are vital to global commerce."

“This bilateral partnership with Sri Lanka security forces reinforces the global maritime rules that produces greater prosperity for all of us," U.S. Embassy Chargé d’Affaires Robert Hilton said in a statement.

The aircraft is "on a routine Indo-Asia-Pacific to ensure safety and security of vital sea lanes and trade routes, including integrating air and sea patrol operations."

A version of the aircraft P-8I has been sold to the Indian Air Force.
 
"We are pleased about the opportunity to partner with our friends in the Sri Lankan government and armed forces," Lt. Anthony Beres, the detachment officer in charge was quoted as saying.

"The P-8A Poseidon brings advanced capabilities to maritime safety patrols, search and rescue, counter-narcotics, and humanitarian and disaster relief efforts, and we appreciated engaging with the Sri Lankan Navy during this visit."