Login With Google
‘Mattala project with India is on’
Why it in news?
- Three rounds of official negotiations were completed on a likely joint venture between the AAI and the Airport & Aviation Services in Sri Lanka, to run the loss-making Mattala airport, located in Sri Lanka’s Southern Province
What is in the deal?
- The two governments, after detailed negotiations, have agreed that India, with a 70% stake in the joint venture, will contribute $225 million to revamp and run the airport.
- While the Sri Lankan side will invest the balance.
- India will operate the airport on a 40-year lease, as per the draft agreement.
Mattla airport
- first greenfield airport and the second international airport in the country, after Bandaranaike International Airport in Colombo.
- Situated about 40 km from the southern town of Hambantota, where China has majority stake in a strategic port it built.
- It has been called "the world's emptiest international airport" due to its low number of flights despite the large size of the airport.
- The joint venture would see India gain a major stake of the airport.
- Mattala airport, named after former president Mahinda Rajapaksa, was one of the major infrastructure projects of Rajapaksa’s nearly a decade-long rule.
- The project was funded through high interest Chinese commercial loans. The airport was officially opened in March 2013.
- TheThe only international flight operating from there was halted in May due to recurrent losses and flight safety issues.
- TheThe government in 2017 invited investors to turn the airport into a profit-sharing joint venture. However no proposals were received to operate, manage and maintain it.
Source
The Hindu, Indian express