Sri Lanka’s ambitious plan to revive the loss-making Mattala Rajapaksa International Airport has triggered intense interest from regional powers, setting the stage for a high-stakes contest involving India, China, and the United Arab Emirates (UAE). The government has unveiled a 30-year Build-Operate-Transfer (BOT) lease model aimed at transforming the underutilized airport into a commercially viable aviation and logistics hub.
The international tender, scheduled to close on June 9, 2026, is attracting significant attention due to Mattala’s strategic location near the Hambantota Port, a key Chinese-operated maritime facility leased for 99 years. Industry observers note that the airport project has evolved beyond a simple commercial transaction, carrying substantial geopolitical implications for the region.
Under the proposed BOT arrangement, prospective investors must meet stringent eligibility criteria, including a minimum net worth of US$50 million and at least five years of experience operating airports certified by the International Civil Aviation Organization (ICAO). Government officials expect to issue a formal Request for Proposals (RFP) by late July following the evaluation of Expressions of Interest (EOIs).
According to the Ministry of Ports and Civil Aviation, 47 parties have already expressed interest in the project. These include major state-owned and private-sector entities from India, China, and the Gulf region.
Indian stakeholders are reportedly evaluating the project from both commercial and strategic perspectives. Analysts suggest that securing a role in Mattala would provide New Delhi with a stronger presence in southern Sri Lanka, balancing China’s significant influence through the neighboring Hambantota Port. The move is also viewed as aligning with India’s broader regional engagement strategy while supporting the expansion of its growing aviation and logistics sectors.
China, meanwhile, remains deeply invested in the airport’s future. Mattala was originally constructed with a US$200 million Chinese loan, and state-backed Chinese firms are closely monitoring the tender process. Their interest is largely linked to safeguarding the wider economic and logistical ecosystem surrounding Hambantota, where China has invested billions of dollars.
The UAE has also emerged as a serious contender. With growing geopolitical uncertainties affecting global trade routes, Gulf-based aviation and logistics companies are exploring opportunities to develop Mattala into an alternative cargo, aircraft storage, and supply-chain hub. Recent diplomatic engagements between Sri Lankan officials and UAE representatives have further highlighted this interest.
Unlike previous attempts to attract investors solely for passenger operations, the government has restructured the project into two distinct investment tracks. The first covers airside operations, including airport management and aerodrome services, while the second focuses on landside commercial development. Investors may bid for either segment or both.
Authorities envision future developments including maintenance, repair and overhaul (MRO) facilities, cargo centers, flight training academies, aircraft manufacturing ventures, hospitality projects, and resort developments.
With Mattala currently generating annual losses estimated at nearly Rs. 3 billion, the government is under pressure to secure a capable private partner. Officials hope to finalize negotiations by the end of 2026, with the Cabinet-Appointed Negotiation Committee overseeing the selection process.
As bidding intensifies, Mattala Airport has become far more than an underperforming aviation asset it is rapidly emerging as a focal point in the strategic competition for influence in the Indian Ocean.
