Aviation sector investments rise

Private sector to pump in US $ 263 m:

Shirajiv SIRIMANE

Private investments in Sri Lanka’s aviation sector is likely to rise to US $ 263 million next year. This figure is expected to increase to US $ 2.3 billion between 2017 and 2020.

One of the main reasons for this surge of interest is the construction of the second international airport in Mattala Hambantota. The construction on the $ 209 million first phase of the airport is expected to be completed by end 2013.

The new airport is being built to be compatible to accommodate the latest Airbus A380 aircraft and has been designed according to recommendations of the International Civil Aviation Organization. The airport is designed to facilitate for over 800 foreign passengers at peak hours.

Mechanical Repair and Overhaul (MRO) will be one of the biggest investments that will be taking place in Mattala. In addition several pilot training schools too are expected.

The foundation for the airport hotel too has been laid.

The Mattala airport will focuses 60 percent on cargo movements and this will help to ease congestion in Colombo. In addition exporters in the Southern and Eastern Provinces could use the new airport which will save them of transport as well and they will be able to save on the post harvest loss. There was an increased demand for both cargo and passenger movements this year which saw a 24% leap from the previous year. The aviation sector also saw US $ 16.7 million being invested in 2010.

Airport and Aviation Authority Chairman Prasanna Wickramasuriya said already several airlines have decided to include Mattala from 2013 and this will help the aviation sector developments in a big way.

Wickramasuriya also said private jet movements too have seen a significant increase and they have decided to convert the Ratmalana Airport to a city airport.

The old catering building at the Colombo Airport has been converted to a domestic terminal and this will be opened next year allowing passengers to take immediate domestic connections out of Colombo or international connections from Colombo.

In addition, the increase of tourist arrivals too has created opportunities in the aviation sector. Many new airlines have included Colombo in their radar while the airlines that are flying to Colombo too have increased frequencies.

While SriLankan Airlines is increasing their air taxi destinations a sea plane landing facility too is expected to be opened next year in Ja-ela.