Sri Lanka has renewed its search for investors to take over the loss-making Mattala Rajapaksa International Airport, reviving efforts to offload one of the country’s most underutilized infrastructure projects after a previously announced 30-year lease agreement failed to materialize.
The government has issued a fresh call for expressions of interest, positioning the airport as a facility with “untapped potential for growth opportunities,” particularly in relation to tourism and strategic investment. Despite this optimistic framing, the airport’s track record presents a challenging proposition for potential investors.
Located on the southern coast near a wildlife sanctuary, Mattala Rajapaksa International Airport was constructed with loans from China and opened in 2013. From the outset, it struggled to attract consistent airline traffic. Today, it operates without regular commercial passenger flights, relying instead on sporadic cargo services and occasional charter operations—insufficient to sustain its operational costs.
Official reports indicate that the airport has consistently failed to generate enough revenue to cover even basic expenses such as electricity, placing a persistent financial burden on the state. Its underperformance has made it emblematic of a broader pattern of infrastructure investments that have not delivered expected economic returns.
The latest attempt to privatize or lease the airport follows the collapse of a previously announced deal involving an Indo-Russian joint venture. In 2024, Sri Lanka stated it had awarded a 30-year lease to a partnership between India’s Shaurya Aeronautics and Russia’s Airports of Regions Management Company. However, the agreement never progressed to implementation, and no operational transition occurred.
The airport is named after former president Mahinda Rajapaksa, under whose administration Sri Lanka undertook a series of large-scale infrastructure projects financed primarily through Chinese loans. Many of these projects, including Mattala airport, have faced criticism for poor planning and weak commercial viability.
These debt-financed developments have been cited as contributing factors to Sri Lanka’s severe financial crisis, which culminated in a sovereign default in 2022 on approximately $46 billion in foreign debt. In response, the country entered an International Monetary Fund (IMF) program in 2023, committing to structural reforms that include the privatization or restructuring of state-owned enterprises.
Despite these commitments, progress has been slow. Efforts to attract investors for underperforming assets, including Mattala airport, have so far yielded limited results, reflecting both market skepticism and structural challenges.
Operational difficulties at the airport extend beyond financial concerns. Its location along a migratory bird route has posed persistent aviation risks, with several recorded bird strikes forcing aircraft to ground. In earlier years, authorities even deployed military personnel to clear wildlife—including elephants, deer, and wild buffalo—from the runway to ensure safe operations.
While the airport was originally envisioned as a secondary international gateway and a contingency option during adverse weather conditions affecting Colombo’s main airport, its strategic utility has remained limited. Colombo’s primary airport is only a short flight away, reducing the practical necessity of a fully operational alternative hub.
The proximity of Mattala to Hambantota port—another Chinese-funded project—adds a geopolitical dimension to its future. In 2017, Sri Lanka granted a 99-year lease of Hambantota port to China Merchants Port Holdings after struggling to service its debt. That deal drew international scrutiny and fueled concerns about the use of infrastructure financing as a tool for geopolitical influence.
