205 million USD investment in Mattala Airport
The Indian government is prepared to make an initial investment of 205 million USD in the proposed Indo-Sri Lanka joint Mattala Airport venture.
The Hindu-newspaper reports that Sri Lankan authorities have already been informed of the above through the proposal submitted to the cabinet by Minister of Transport and Civil Aviation Nimal Siripala de Silva.
The proposal which includes suggestions on how management, maintenance and revenue generation will be made through the Mattala Airport also includes the ownership percentage of the agreement.
Accordingly, the Indian Government will have 70% of the airports ownership for a period of 40 years. According to sources the Sri Lankan government is expected to invest 88 million USD for the joint venture.
The proposal has been made to develop the airport to a profit-generating position through the public private joint ventures approach.
The Indian proposal has been forwarded to a committee of senior Ministers who will discuss its legitimacy.