Cabinet nod to Committee recommendations on Mattala

Friday, 8 March 2019 00:00 - - {{hitsCtrl.values.hits}}

The proposal to implement the recommendations made by the Negotiating Committee and Project Committee appointed to evaluate the proposal made by the Airports Authority of India (AAI) was approved by the Government this week.

The proposal was jointly proposed by Prime Minister Ranil Wickremesinghe, Finance Minister Mangala Samaraweera, and Transport and Civil Aviation services Minister Arjuna Ranatunga, the Cabinet office announced yesterday.

The initial proposal given by India to form a joint venture to operate the airport for a period of 40 years valued the Mattala Airport at $ 293 million, and proposed to invest on 70% of the shares valued at $205 million. However, Sri Lanka was not happy with the valuation, and commissioned the Government Valuer to estimate its worth. Later, India accepted Sri Lanka’s estimate of $ 325 million, given by the Chief Valuer, during discussions with the committees.

The Government has been struggling to find an investor to turn around the loss-making airport, which was built with Chinese loan funding. The airport, dubbed as the world’s emptiest airport, saw the only airline flying to Mattala Airport, Fly Dubai, halt its flights in mid-2018.