COLOMBO— Sri Lanka has renewed efforts to attract investors for the underutilized Mattala Rajapaksa International Airport (HRI), a facility that has struggled to sustain operations since its launch more than a decade ago.
The government issued a fresh call for expressions of interest, positioning the airport as a strategic asset despite its long-standing financial losses.
Located near Hambantota, the airport sits within close proximity to key shipping routes and tourist zones, while the country’s main gateway remains Bandaranaike International Airport (CMB).
Sri Lanka’s New Investment Push for Mattala Rajapaksa Airport
Authorities are actively seeking private or foreign investment to revive the airport’s commercial viability. Officials described the project as an opportunity for tourism-led development and aviation-linked infrastructure growth.
The latest move follows the collapse of a previously announced 30-year lease agreement involving India’s Shaurya Aeronautics and Russia’s Airports of Regions Management Company. That proposal failed to progress beyond initial stages, leaving the airport without a long-term operational partner.
The government has since intensified efforts to attract new bidders, highlighting the site’s expansion capacity and its role as a secondary aviation hub.
Operational Challenges
Since opening in 2013, the airport has struggled to generate consistent traffic. It currently lacks scheduled commercial passenger flights, with only limited cargo and charter operations contributing to revenue.
Officials have acknowledged that earnings remain insufficient to cover even basic operational costs, including utilities and maintenance.
The airport’s location near wildlife habitats has further complicated operations, as bird strikes and animal intrusions have disrupted flight activity.
In previous years, authorities deployed security personnel to manage wildlife risks on the runway, underscoring the logistical challenges of maintaining safe operations in the area.
Debt and Strategy
The airport forms part of a broader infrastructure program launched during the tenure of former president Mahinda Rajapaksa.
Many of these projects relied heavily on external financing, particularly from China.
Sri Lanka’s mounting debt burden contributed to a severe economic crisis, culminating in a sovereign default in 2022 on approximately US$46 billion in foreign debt, Channel News Asia flagged.
The country later secured financial assistance from the International Monetary Fund, prompting reforms that include privatizing underperforming state assets.
Mattala airport has since been identified as a key candidate for restructuring or private management. Despite its current limitations, the facility continues to serve as an alternate airport during adverse weather conditions affecting Colombo.
Authorities maintain that with the right investment model, the airport could evolve into a specialized hub for cargo, maintenance, or tourism-linked aviation services.
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