Mattala Debt to Equity Swap Offer by Chinese Nominee Rejected

The government  of Srilanka   decided to sell off the airport under  a ‘debt to equity swap.’ In short , the debt  obtained by the Government of Sri Lanka for the construction of the Mattala  airport at that time  is to be absorbed by the company that buys it.

The conditions stipulated by the party first nominated by China for the development of the Mattala International Airport is not acceptable  to the Government of Srilanka.

According to a report submitted to the Cabinet, the government has informed the Chinese government that,   it cannot agree to the conditions laid down by its nominee to develop the airport. Hence, a new party was to be nominated.