India is in advanced talks with Sri Lanka to operate Mattala Airport on the southern tip of the island, where China had invested heavily as part of its ‘Belt and Road’ initiative. India proposes to operate, manage, maintain and develop the airport through a joint venture, holding 70% of the equity for 40 years. Civil Aviation Minister Nimal Siripala said that the Government had been looking for alternative investors in the Hambantota area, where China has built a seaport and is in discussions to build an investment zone and a refinery. "It was during this time, India came up with a proposal," Siripala said. "They were ready for a joint venture with the Airport & Aviation Services Ltd," he said, referring to the Government company that runs Sri Lanka's main airport in the capital Colombo and the one in the south, in Mattala. Hambantota sits near one of the world's busiest shipping lanes and is an important part of the Belt and Road initiative, aimed at building trade and transport links across Asia and beyond to Europe. China runs the seaport with a 99-year lease and was planning to expand its footprint in the area with the refinery that would be Sri Lanka's largest, and an investment zone of about 6,000 hectares. Beijing's projects, backed by loans extended by the Chinese government and initiated by a previous Sri Lankan government, have faced widespread opposition. Local residents facing eviction to make way for the projects have staged numerous protests. Other critics say the Sri Lankan regime signed up for unnecessary and lossmaking projects, pushing the country into long-term indebtedness. India now has offered to set up a joint venture with Sri Lanka to manage and expand facilities at the loss-making Mattala Airport. The initial investment would be USD 293 million, of which India will provide 70% on a 40-year lease, according to a Sri Lankan Cabinet paper that details the Indian plan to make the airport viable. The airport, built at a cost of USD 253 million, part-financed by China, has been dubbed the world's emptiest airport for its long, empty corridors. The Indian government source said India had proposed establishing a flying school and a maintenance hub at Mattala to boost airport revenues while it builds up traffic. There are also hopes the airport could be a destination for Indian tourists. China said it was not aware that Sri Lanka was considering allowing India to manage the airport. China also put in a bid to operate the facility, but the two sides failed to agree on financial terms. #1060.6 * As in the case of the seaport, Mattala Airport it was built under the former President Rajapaksa with a USD 190 million loan from the Exim Bank of China. Opened in 2013, the airport has proved a major financial strain, with barely two daily flights. As operational losses persisted, Sri Lanka in December 2016 sought expressions of interest to operate the airport through a public-private partnership. The Government received a total of eight proposals, but the recent Cabinet Committee has been asked to evaluate India’s proposal alone. #1060.7