The five-year concessions stand to be awarded by Airport and Aviation Services (Sri Lanka) Ltd after approval was given by Cabinet to proceeed with negotiations with the two parties.
The former duty free concesson expired in May but had been extended on a temporary basis until protracted contract discussions were resolved and Cabinet approval gained.
Aldeasa and Flemingo will share space equally, each running 300sq m of space split between Departures and Arrivals. The targeted start-up date for the new concessions is August. The Moodie Report understands that a revenue share model (plus space rent) is likely to be implemented.
If the contracts are ratified the news will delight Flemingo, which is the leading player in Sri Lanka’s neighbour India. But it will come as a disappointment to Aldeasa if it has to split a long-held and lucrative business.