Sri Lanka opens domestic flights to international airlines

Sri Lanka has approved providing licenses to foreign airlines to operate flights between domestic airports to boost the local aviation industry, the government said. Under current bilateral agreements, international airlines operating in Sri Lanka are unable to bring traffic within the island between airports, generally known as ‘6th freedom’ and beyond.

However, the ministers' cabinet provided the approval to the civil aviation authority in Sri Lanka to grant one-year operating licenses to foreign airlines interested in flying within Sri Lanka, the state information office said.

Jaffna International Airport, Batticaloa, Colombo, Ratmalana and Mattala International Airport will require airlines to operate. Sri Lanka expects Indian airlines to fly with smaller regional aircraft to Jaffna later this year, which may also be useful for liberalisation. Domestic aviation, however, is still in its infancy. The International Airport of Mattala is also mostly unused.

Eastern Asia had liberalised air travel even earlier than in South Asia. Countries like Vietnam, which later started to expand beyond Sri Lanka, have moved ahead. Foreign airlines are flying with the state, including Cebu Pacific, Bamboo, and Jetstar Pacific. AirAsia, headquartered in Malaysia, approached the government of Sri Lanka to set up an airline in Sri Lanka, but no progress was made. A joint venture has since formed in Vietnam.

OSL Take: The government of Sri Lanka is engaged in a programme to uplift the country’s airport and aviation industry by launching a plan to develop regional airports in several parts of the country. The local airports aim at further developing Sri Lanka’s connectivity to foreign destinations and trading markets. The government has also helped boost the country’s tourism industry and the operation of many international airlines in the island.

Further, Sri Lanka’s geographical positioning in the Indian Ocean, the ‘ease of doing business’ environment in the country and the strong trade ties with other countries, as well as the continuously growing tourism industry make the island the ideal business/investment destination in South Asia. Foreign businesses could, therefore, confidently explore business opportunities in Sri Lanka’s airport and the aviation industry as well as the opportunities in developing additional infrastructure facilities.

VBS/AT/20191101/Z_TB2