By: Vibhuti Pathak
Sri Lanka’s Mattala Rajapaksa International Airport (MRIA), dubbed the “White Elephant Airport,” has been handed over to Shaurya Aeronautics Pvt. Ltd. of India and Airports of Region Management Company of Russia. The decision comes amidst the government’s efforts to privatize struggling state-owned enterprises amid a financial crisis.
Built with a Chinese loan in 2013 near a wildlife sanctuary on the southern coast, the airport has faced significant challenges since its inception, including low flight numbers, environmental concerns, and financial losses. The airport’s management will now be overseen by the Indian and Russian companies for the next 30 years, although the exact value of the deal has not been disclosed.
Despite being named after former President Mahinda Rajapaksa, the airport has been a commercial failure, leading to its closure after Rajapaksa’s defeat in the 2015 presidential election. Flydubai, one of its operators, ceased operations in June 2018 due to poor passenger traffic, further exacerbating the airport’s financial woes.
Sri Lanka’s financial troubles have been exacerbated by debts to China, with the country defaulting on its foreign debt in 2023. In 2017, Sri Lanka allowed China Merchants Port Holdings to take over the nearby port at Hambantota on a 99-year lease, raising concerns about Beijing’s influence through “debt traps” abroad.
Most notably, the airport’s location in the midst of a migratory bird route has posed safety risks, with several incidents of aircraft being grounded after striking birds. The handover of the airport to Indian and Russian companies marks another chapter in Sri Lanka’s attempts to navigate its financial challenges and restructure its assets.
