Mattala Airport joint venture with India in finale stages

COLOMBO (News 1st) - Several reports in the recent days have surfaced with regards to a joint venture on the Mattala Rajapaksa International Airport. The government, due to the debt servicing burden of such projects and due to corruption has introduced several unpopular fiscal measures. Quoting the secretary to the ministry of transport and civil aviation G. S. Vithanage, a local newspaper reported that Sri Lankan authorities are confident the proposed Mattala Airport joint venture is just one step short of being finalised. It further stated, that since last year three rounds of discussions were held with the Civil Aviation Ministry and the Indian Ministry of External Affairs. Meanwhile, another local newspaper reported that a draft Memorandum of Understanding to hand over the management of the Mattala Rajapaksa International Airport to the Airports Authority of India was recently presented to the Cabinet of Ministers and is now being re-drafted at the request of the Indian Government. The second paper added that talks for management control of the Mattala Airport are ongoing between India and Sri Lanka. The loan obtained for Mattala airport is US $190 million which equates to Rs. 30 billion and was obtained for 15 years from the Chinese Government. The loan is due to be settled by 2030. The Deputy Minister of Civil Aviation stated the Indian government has agreed to invest US $220 million which amounts to Rs 35 billion.