Could you give our readers some background information on the Ministry of Aviation, such as its main responsibilities today as well as the main developments that occurred in the sector in the last couple of years?
My Ministry consists mainly of the Department of Civil Aviation, Airports Authority of Sri Lanka Company Limited and Air Lanka Limited. As you know Air Lanka is partly privatized, as Emirates have purchased 40% and the Government owns the balance. Nevertheless, the controlling power is with Emirates. We are in the process of restructuring the Department of Civil Aviation with the assistance of ICAO. Currently, we are planning to make it more efficient, by converting the department into an authority, namely, the Civil Aviation Authority. We will have modernized equipment, additional new staff since technologically and engineering wise experienced people will be recruited. Another authority that comes under me is the Airport & Aviation Services (Sri Lanka) Limited AASL that is the Airport Authority. The airport is the main institution in my Ministry, which has a Chairman and five Directors. It is fully owned by the Government and controls the entire Airport and Aviation operations. We have only one international airport, The Bandaranaike International Airport, but there are twelve more domestic airports which are controlled by the military personnel, including the Ratmalana Airport which is also mainly used for civilians flying to and from Jaffna, the war torn area. This operation is being carried out with the assistance from the Air Force, because of the war that is occurring in Jaffna. We have authorized the airforce to handle all passenger traffic to the peninsula. This is part of an important function of our Ministry.
The facilities currently maintained at the Colombo Airport are limited. What facilities are you planning to make available in the near future in order to make this Airport viable and competitive with the other worldwide airports?
We have approximately 2.6 million to 3 million passengers per year trafficking through Colombo. It is true that our airport, though it is an international airport lacks certain facilities, especially the peers and bridges. When people first come into the airport, they have to get into the bus to get off the airplane and access the arrival terminal. With the assistance of the Japanese Government and under the guidance of Her Excellency The President, Mrs. Chandrika Kumarantunge, we are in the process of developing the Bandaranaike International Airport. She has negotiated a loan from the Japanese Government to the tune of 15 Billion Yen for this project. We have already commenced the operation of this project and we hope to start development work before the end of this year. The project will consist of different stages. At stage one will have one pear with eight bridges ,and the apron facilities will be developed. Moreover, the terminal building will be developed to cater at least five million passengers per year. At stage two we are hoping to start with Sri Lankan funds ,where we will have another peer with eight bridges. Once these two stages are completed 16 planes could be parked at a given time and all the passengers can come to the airport through the aero-bridges. This airport was planned about twenty to thirty five years ago, and they certainly did not expect such a large load of traffic then, such as we are currently experiencing. Although there is a war in the North, tourists continue to come to Sri Lanka, and for example, in 1999 we had the highest number of tourists coming to Sri Lanka. We are in the process of completing a duty free complex with fifty new shops in the arrival area, and we are also planning to build a ten story car park to house at least 2000 vehicles with lifts and escalators, in August or September. The President is planning to build another duty free complex as there is a growing demand for duty free items in Sri Lanka especially from the Indian sector as prices in Sri Lanka are very competitive. When compared with the Dubai airport, Sri Lankan duty free items are less expensive. For example, when I visited Dubai I found that even the liquor prices were between 50 cents and 1 Dollar higher than Sri Lanka duty free prices. Therefore we hope to develop the duty free business since we can earn good income from it. We will also be getting new modernized navigational systems ,and in about four years we will be able to provide a modernized International Airport.
Another project includes the building of a second runway or even have another airport. We have identified three locations and one is Hingurakgoda, the other place is Mathugama and the third is Hambantota. We are now investigating these places in order to decide the best place to build another international airport, since there is a big demand for domestic flights in Sri Lanka, specially for business and tourist travel. Because of this demand, we hope to start the Colombo-Hikkaduwa, Colombo-Veerawila and Colombo-Anuradhapura domestic flights this year. This would be very convenient to both locals bussiness people and international travelers, since it would take them approximately half an hour to get to the destinations they want, as Sri Lanka is a very small country.
Can you tell us how many International Airlines come to Sri Lanka?
Currently, there are twenty-seven airlines that come to the country.
Are you planning to increase that number?
I held discussions with KLM last week when I was in London. Even though they pulled out in 1997, I invited them to come back to Sri Lanka. Hopefully they are considering coming back to Sri Lanka as they are presently restructuring the airline. KLM is looking for a strategic partner either British Airways or Swissair ,and once that is completed, hopefully they might come back to Sri Lanka. We hope to also invite British Airways to Sri Lanka. Lots of Middle Eastern Airlines want traffic rights to Sri Lanka, especially Qatar Airways and Gulfair, who are already enjoy daily flights but they want more frequencies to Sri Lanka.
Even today, the Ambassador of the UAE called me and he wanted an appointment as last month a delegation came from Dubai to request for another frequency for Gulfair. Qatar Airways too want another frequency , and Iranian Airlines is considering flying to Sri Lanka as we have signed a bi-lateral agreement with them. | For these International Airlines, what kind of facilities do you provide, and how can they use the Colombo International Airport more efficiently?
Our airport is equipped with modern technical facilities. Thus they will be using all facilities when they are landing and during take off, when they are fueling and refueling. Our navigational staff and airport staff are qualified in foreign countries such as Germany, Singapore, Thailand, India, and moreover we have a set of well-qualified officers.
You mentioned earlier on that you travel extensively in order to sign new agreements with other Airlines and Governments. To what extent is your Ministry playing a roll in attracting foreign investors to the sectors of the economy that are under the Ministry's jurisdiction?
If we can have more flights to Sri Lanka, and if we can further develop the airport, when investors come to Sri Lanka, their first sight which is the airport should give them a first good impression. This should be reassuring, and also building their confidence that Sri Lanka is a pleasant place. I am confident that facilities like domestic airlines and domestic airports, when developed, will play a major role for travel within the country.
How do you attract investors to the aviation sector, as is the case of Emirates, for example, that bought over 40% of shares of the national carrier? Do you intend selling more shares in the future?
Currently, there is the Finance Ministry and the President herself that are controlling that particular aspect. However, as far as I know there is no idea right now of selling more shares.
As you know, our report is aimed to attract foreign investors to the country and to demonstrate investment opportunities that are available in Sri Lanka. How would you describe the investment climate in the country?
Although there is a war in this country, the war is far away, which is about two hundred to three hundred kilometers from Colombo. A lot of investors come to Sri Lanka from Japan, Korea, and Germany ,and most of them come to my electorate. I represent an electorate where the free trade zone is situated and where the airport is located. During the last six years I know that investments have doubled ,and I believe that business opportunities are endless.
We have spoken to other Ministers also who shared some of their views regarding the future of Sri Lanka. For example, the Minister of Tourism mentioned that the Government is trying to improve the image of the country abroad since it is currently suffering from the war. To what extent is your Ministry active in promoting the country abroad?
We are promoting our image by inviting new airlines specially Western Airlines to visit our country. Then the Middle Eastern airlines are requesting more frequencies into Sri Lanka, which shows that they are still interested in Sri Lanka. Although one or two airlines pulled out three or four years back, they are now considering coming back. For the moment, the peace negotiations are occurring, and if we reach peace I think this would be another heaven. As a result we will have more investors, more funds coming into the country and more job opportunities will be available.
Far Eastern Economic Review will be back in three years time to do a new report on Sri Lanka. Where would you see Sri Lanka in the next three years and how do you see your contribution to the Sri Lankan economy in the next couple of years?
Taking into consideration our economy and the aviation aspect, our income will definitely rise ,and I believe that our income will then be doubled from what we are getting now. The number of passengers coming into Sri Lanka will have reached the mark of 5 Million. When you come in three years time you will be coming through a new international airport with modern facilities, because by that time we would have decided to have another airport or runway.
Our readers who are top leaders in their own sectors around the world, are always interested in background information of other top leaders, so can you tell us a little bit about yourself and what would you say is your biggest achievement since you became the Minister of Aviation?
I started my career as a mathematics and science teacher. After two years I joined Law College and became a criminal and labour lawyer and practiced law until 1994. I was first elected into parliament in 1989, and until 1994 I worked in courts. I had a very good practice with at least forty to fifty cases a day. After 1994, I became a Deputy Minister and for a short time I was Deputy Minister of Finance ,and then Deputy Minister of Plan Implementation and Ethnic Affairs. In 1997 I was Minister of Plan Implementation and Parliamentary Affairs. In the year 2000 I became the Minister for Aviation and Airports Development. Although in 1989, 1990, 1991, 1992, 1993 the country was going through a very difficult period, our President has overcome the effects of all those problems and no such incidents take place any more. She has given that assurance to the people, and that is why she was able to win this election in 1994. She was re-elected for the second time also. So therefore you see that we work for the development of this country under a democratic framework.
Do you have a final message to our readers who read the Far Eastern Economic Review and who are businessmen and potential investors?
My message is that Sri Lanka is an ideal place for investors and tourist destinations. You will not find friendly people like the Sri Lankans anywhere in the world. I therefore believe that people all over the world should make use of these opportunities.
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