AAI plans to build airport in Sri Lanka

The Airports Authority of India plans to build an airport in Sri Lanka, which could be its first foray into the international market in about 30 years.

The state-owned operator had earlier built airports in Libya and Yemen.

"We are looking at bidding for an airport at Palaly in Sri Lanka. We have recently done the feasibility study for the airport," said AAI chairman V P Agarwal.

The airport is near the city of Jaffna and upgrading the airport will include building a runway and the terminal building and the project would be worth Rs 400-500 crore (Rs 4-5 billion).

AAI has been developing 35 non-metro airports across the country at a cost of around Rs 12,000 crore (Rs 120 billion).

The authority is also taking up the city-side development of Kolkata, Visakhapatnam, Bhubaneswar, Lucknow, Indore, Ahmedabad, Amritsar, Guwahati and Jaipur airports through public-private partnerships.

During 2008-09, AAI had invested Rs 2,547.5 crore (Rs 25.47 billion) on modernising airport terminals, passenger facilities and air traffic and navigational aids -- the highest capital expenditure incurred by it so far.