Skip to content
Search

Latest Stories

Sri Lanka offers tax cuts to revive its airport

SRI LANKA'S new government Friday (28) offered tax breaks and subsidised fuel to revive the island's second international airport built with Chinese loans but which ended up a white elephant.

Authorities announced plans to suspend the $60 departure tax for two years and allow airlines free landing and parking after scheduled carriers abandoned Mattala Rajapaksa airport.


Ground handling services will also be offered at discounted rates while migrant workers flying out of the airport 250 kilometres (150 miles) from Colombo will be offered concessionary fares.

Budget carrier Flydubai was the last scheduled operator to pull out of the airport, which is named after former president Mahinda Rajapaksa.

The previous administration, which lost the November presidential election to Rajapaksa's younger brother Gotabaya, had been in talks with neighbouring India to revive the airport as an aircraft maintenance facility.

It was not immediately clear if the new government had abandoned those plans but the country's cabinet said in a statement they wanted scheduled passenger services to resume.

The airport a five-hour drive from the capital is in the middle of a migratory route for birds.

Several aircraft have hit birds since it opened in 2013, and four years ago the military deployed hundreds of troops to clear deer, wild buffalo and elephants off the sprawling facility.

The airport, which cost an initial $210 million and employs about 550 workers in Rajapaksa's home district, has failed to generate enough business to pay staff, let alone make a profit.

The first foreign airline to operate out of the facility was Air Arabia in 2013 but they pulled out after six weeks of scheduled services. Flydubai quit in June 2018 without giving a reason, but officials said poor passenger traffic may have spurred the budget carrier to leave.

Even Sri Lanka's national carrier, Sri Lankan Airlines, stopped flying to Mattala in 2015 soon after Rajapaksa was defeated in the January 2015 elections. Sri Lankan later said they saved $18m annually by not flying to the airport.

But the facility has remained an emergency alternate landing location for flights heading into Colombo International, about 30 minutes away by air.

In 2017, China took over a loss-making deep-sea port at Hambantota, in the same area as the airport, on a 99-year lease under a $1.1m deal, sparking concern in neighbouring India.

(AFP)

More For You

Shein-Reuters

Shein had aimed to go public in London in the first half of this year, subject to regulatory approvals in the UK and China. (Photo: Reuters)

Shein cuts valuation to £40 billion for London listing

SHEIN is preparing to lower its valuation to around £40 billion for a potential initial public offering (IPO) in London, according to three Reuters sources familiar with the matter.

This is nearly 25 per cent lower than the company's 2023 fundraising valuation as it faces increasing challenges.

Keep ReadingShow less
Northern-Superchargers-Getty

Ben Stokes and Matthew Short of Northern Superchargers walk out to bat during The Hundred match between Manchester Originals and Northern Superchargers on August 11, 2024 in Manchester, England. (Photo: Getty Images)

Sunrisers Hyderabad to acquire Northern Superchargers in £100 million deal

INDIAN Premier League franchise Sunrisers Hyderabad is set to become the first full owners of an English Hundred team after agreeing to buy Yorkshire’s Northern Superchargers for a reported £100 million.

The Sun Group will be the third IPL-linked investor in the eight-team Hundred competition, following Reliance Industries, which owns Mumbai Indians, and RPSG, which runs Lucknow Super Giants.

Keep ReadingShow less
BT-Getty

A view of the British Telecom (BT) headquarters in central London. (Photo: Getty Images)

BT to remove diversity targets from manager bonuses

BT will remove diversity, equity, and inclusion (DEI) targets from its manager bonus scheme, replacing them with a measure of overall employee engagement.

The change, set to take effect in April, follows consultation with major investors and has received “strong support,” according to the company, The Telegraph reported.

Keep ReadingShow less
India's central bank cuts interest rates for first time since 2020

The central bank announced a 25-basis-point cut in the benchmark repo rate to 6.25 per cent, the rate at which it lends to commercial banks.. (Photo credit: Reuters)

India's central bank cuts interest rates for first time since 2020

THE RESERVE BANK OF INDIA (RBI) reduced interest rates on Friday for the first time in nearly five years, citing concerns over economic growth despite inflation risks.

The central bank announced a 25-basis-point cut in the benchmark repo rate to 6.25 per cent, the rate at which it lends to commercial banks.

Keep ReadingShow less
Sri Lanka seeks to negotiate with Adani over renewable energy plants

Gautam Adani

Sri Lanka seeks to negotiate with Adani over renewable energy plants

SRI LANKA’S government started talks with India’s Adani Group to lower the cost of power from two wind power projects the group will build in the island nation’s northern province, the cabinet spokesman said last Tuesday (28).

Sri Lanka has been reviewing the group’s local projects after US authorities in November accused billionaire founder Gautam Adani and other executives of being part of a scheme to pay bribes to secure Indian power supply contracts. Adani has denied the allegations.

Keep ReadingShow less