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India watching Lanka’s offer to investors over airport at strategic site
Sri Lanka opened up Mattala Rajapaksa International Airport to expressions of interest from local and international investors under a 30-year BOT framework, with a deadline of June 9. The offer outlines two tracks for airside and landside operations, including 238 hectares of land for development. The move follows previous stalled efforts and historic context, including a 2017 Chinese lease of Hambantota port and a 2024 failed JV plan with Indian and Russian partners.
Why It Matters
The bid tests regional geopolitics and Indian engagement in Sri Lanka, reflecting India's Neighbourhood First policy and interest in securing influence around a strategically located airport near a Chinese-controlled port.
Timeline
4 Events
Sri Lankan government invites expressions of interest for Mattala airport under two investment tracks; deadline set for June 9
May 15, 2026
The government seeks expressions of interest from domestic and international investors by June 9 to take over Mattala Rajapaksa International Airport under a flexible 30-year build-operate-transfer (BOT) model. It offers two independent tracks: airside operations (a management contract requiring five years of aviation experience or operation of at least one international airport handling more than one million passengers annually) and landside operations (a BOT with a 30-year lease covering 238 hectares for development such as MRO facilities, a flying school, logistics, solar installations, and resort hotels). The landside opportunity is positioned as lower risk and aligns with India’s Neighbourhood First policy and Vision Mahasagar ambitions in the Indian Ocean region.
Previous 2024 plan to hand airport to Shaurya Aeronautics and Airports of Regions Management Company falls through
2024
A 2024 move to transfer the airport under a 30-year lease to a joint venture between India’s Shaurya Aeronautics and Russia’s Airports of Regions Management Company collapsed following a change in government in Colombo.
Hambantota port handed to China on 99-year lease (and 15,000 acres transferred)
2017
In 2017, the Hambantota port was handed over to Chinese control under a 99-year lease after Colombo could not repay debts related to the project. Approximately 15,000 acres around the port were also transferred with the facility.
Mattala Rajapaksa International Airport opens
2013
The airport opened in 2013, built at a cost of $209 million, including $190 million in loans from China’s Export-Import Bank. It features a 3,500-metre runway capable of handling widebody aircraft but has struggled to attract airline interest and passenger traffic.