A move that could mark its first venture into overseas aviation management, the Adani Group is reportedly negotiating with Sri Lankan authorities to take over the management of three airports in the island nation. The airports in question include the prominent Bandaranaike International Airport in Colombo, along with Ratmalana Airport and Mattala Airport.
Harin Fernando, Sri Lanka’s Minister for Tourism, Land, Sports, and Youth Affairs, confirmed the ongoing discussions, indicating that the modalities being explored could involve management contracts. This potential collaboration comes at a time when Sri Lanka is witnessing a resurgence in tourism, with foreign tourist arrivals doubling to 1.48 million in 2023 compared to the previous year. However, this influx has strained the country’s airport infrastructure, prompting the consideration of private sector involvement to enhance facilities and elevate passenger experiences.
If the negotiations are successful, this partnership would not only signify Adani Group’s inaugural venture into overseas aviation management but also complement its existing presence in Sri Lanka’s ports and renewable energy sector. The group’s recent securing of $553 million funding from the US International Development Finance Corporation for its west container terminal project in Colombo highlights its growing engagement in the region, with geopolitical implications of reducing Chinese influence.
In India, the Adani Group already manages a portfolio of eight airports, including the upcoming Navi Mumbai airport, which collectively serve 23 per cent of the country’s passenger base. This potential expansion into Sri Lanka aligns with the group’s strategic vision of enhancing its footprint in the aviation sector, leveraging its expertise in airport management garnered from its operations in India.
Meanwhile, SriLankan Airlines, the national carrier of Sri Lanka, has been grappling with financial challenges for several years, exacerbated by the COVID-19 pandemic. Privatization of the airline has been mooted as a viable solution to address its financial woes and restore its viability in the market.
As negotiations progress between Adani Group and Sri Lankan authorities, the prospect of private sector involvement in managing Sri Lanka’s airports not only holds promise for bolstering the country’s tourism infrastructure but also signifies a significant milestone in Adani Group’s strategic expansion into the international aviation sector.
