New Delhi is keeping a close eye on Sri Lanka’s recent move to invite foreign investors to manage an airport near the China-operated Hambantota port. This decision could open a door for Indian companies looking to strengthen their presence in the Indian Ocean.
The Sri Lankan government announced that it would accept expressions of interest for the Mattala Rajapaksa International Airport (MRIA) until June 9. This will be done under a 30-year build-operate-transfer (BOT) framework.
In 2017, China secured a 99-year lease for the Hambantota port, raising concerns in India due to its strategic location. In light of Prime Minister Narendra Modi’s visit to Sri Lanka last year, both nations are eager to enhance their trade ties and strategic relationships.
Opened in 2013 with high expectations, MRIA cost about $209 million, mainly financed by China’s Export-Import Bank. However, it struggled to attract enough passengers and airline interest, earning the nickname “world’s emptiest airport.” Now, the Sri Lankan government is looking for strategic investors to take over and revitalize MRIA.
The new expressions of interest outline two main investment options. The first is for managing airport operations, which requires at least five years of experience or managing an airport serving over a million passengers. The second option focuses on landside operations under the BOT model, aiming to develop 238 hectares of land. This space could be ideal for maintenance, training facilities, logistics, and even hotels.
These two investment avenues are separate, allowing investors to choose one or both, making it easier to manage risks. For India, having a stake in Hambantota aligns with its “Neighbourhood First” policy and bolsters its position in the Indian Ocean amid China’s growing influence.
Experts highlight that India’s aviation sector is rapidly expanding, and the need for maintenance and repair facilities is critical. The long, open runways at MRIA are perfect for accommodating Indian carriers, helping them reduce operation costs and turnaround times. Plus, there’s a strong need for pilot training in India, making the opportunity to establish a flying school in Mattala especially appealing.
With Sri Lanka actively seeking Indian investments and offering trade preferences, this opportunity is rare and timely. It comes on the heels of a previous project that fell through when the government changed. This fresh start appears solid, and both countries stand to benefit from deeper cooperation.
Historically, India and Sri Lanka have shared strong ties, but geopolitical influences have often complicated these relationships. Now, as both nations strive for stability and growth, this airport project could signify a turning point in collaborative efforts.
In summary, if Indian firms engage in the MRIA project, it could be a game-changer for regional dynamics and economic development. This strategic investment opportunity will not only boost industry but also reinforce ties between the two neighboring countries.
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HAMBANTOTA PORT, CHINA, INDIA SRI LANKA AIRPORT, INDIA WATCHING CLOSELY SRI LANKA MOVE TO LEASE STRATEGIC AIRPORT NEAR HAMBANTOTA PORT
