New Delhi: Sri Lanka has reopened bidding for the Hambantota airport under a flexible 30-year build-operate-transfer (BOT) structure, reviving opportunities for Indian investors seeking strategic assets in the Indian Ocean region.
The Mattala Rajapaksa International Airport in Hambantota has struggled since opening in 2013. Built at a cost of $209 million, largely financed by China's Export-Import Bank, the airport failed to attract sufficient passenger traffic or airline interest to become commercially viable. Its prolonged underutilisation earned it the tag of the 'world's emptiest airport'. The Sri Lankan government has now issued a fresh expression of interest (EoI), inviting domestic and international investors to operate and develop the airport. The deadline for submissions is June 9, ET has learnt.
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The EoI offers two separate investment tracks. The first covers airside and aerodrome operations under a management contract for civil airport services. The second covers landside operations under a BOT model with a 30-year lease and extension provisions, Colombo-based sources told ET.
"India's aviation sector is the world's fastest growing. Mattala's long runways, uncongested airspace and generous land footprint make it a natural candidate for an MRO hub serving Indian carriers, reducing turnaround times and costs while establishing a genuine Indian Ocean base. A flying school here makes equal sense and Mattala's uncongested skies are an asset, not a liability," a source said.
