NOVEMBER 2016 (DRAFT) 11 March 2017 A NATIONAL CIVIL AVIATION POLICY FOR SRI LANKA Table of Contents 1. Executive Summary ........................................................................................................... 3 2. Acknowledgement ............................................................................................................. 5 3. Introduction ........................................................................................................................ 6 4. Key Elements of the Policy ................................................................................................ 8 5. International Air Transportation ........................................................................................ 8 6. Custom Duties .................................................................................................................. 11 7. Taxation applicable to International Airlines ................................................................... 11 8. Domestic Air Services ..................................................................................................... 11 9. Maintenance, Repair and Overhaul Organizations (MRO).............................................. 12 10. General Aviation .............................................................................................................. 13 11. Stakeholder Participation in Aviation Development ....................................................... 14 12. Designation of Airspace for Special Use ......................................................................... 14 13. Off-shore operations ........................................................................................................ 14 14. Airport Infrastructure ....................................................................................................... 14 15. Airport Master Plan .......................................................................................................... 15 16. Air Cargo Trans-shipment ............................................................................................... 15 17. Land Use Planning ........................................................................................................... 16 18. Air Space Management .................................................................................................... 16 19. State Aviation Safety Programme (SASP) ....................................................................... 17 20. Aviation Security ............................................................................................................. 18 21. Civil-Military Coordination ............................................................................................. 19 22. Facilitation at Airports ..................................................................................................... 20 23. Human Resources Development ...................................................................................... 20 24. Public Private Participation and Investment Promotion .................................................. 21 25. Consumer Protection ........................................................................................................ 21 26. Regulation of air cargo industry ....................................................................................... 22 27. Access for Persons with Reduced Mobility and Special Needs ....................................... 22 28. Multi Modal Transportation ............................................................................................. 22 29. Environmental Safeguards ............................................................................................... 22 30. International Conventions ................................................................................................ 23 31. Taxation and Related Issues ............................................................................................. 23 32. Implementation, Monitoring and Amendment of the Policy ........................................... 23 PAGE 1 11 March 2017 A NATIONAL CIVIL AVIATION POLICY FOR SRI LANKA 33. Glossary ........................................................................................................................... 23 PAGE 2 11 March 2017 A NATIONAL CIVIL AVIATION POLICY FOR SRI LANKA 1. Executive Summary The policy paper, ‘National Civil Aviation Policy for Sri Lanka’ was developed in consultation with most stakeholders in the industry, both public and private. The consultation process was inclusive and transparent so that stakeholders have full ownership of the policy. The policy proposed in this document highlights the future direction and positioning of Sri Lanka as a leading aviation and transport hub in the South Asian region. The overarching objective of the policy is to transform the country into a superior air service provider while connecting to the wider world aviation network. The National Civil Aviation Policy identifies that air transport is a force for good in economic and social development and the role of regulatory oversight is key to quality assurance safeguards that ensure adherence to national legislation and global standards. The policy recognise the need for different levels of development and process of continuous improvement with multi-level of standards basing ICAO standards to be the minimum. Developing guidance, sharing best practices and working in collaboration with industry partners on efficient use of infrastructure is important to achieve the policy objectives. It paves ways for mobilization of resources to overcome constraints and impediments to the partnership and financing for a sustainable aviation future. The Policy identifies that timely modernising (Air Traffic Management) ATM and upgrading and expansion of Airport Infrastructure are critical to cater for growth in traffic and to ensure efficient use of airspace and airports. Use of modern technology is key for modernization. Following the ICAO Aviation System Block Upgrade principles will be a catalyst in that regard. Although business case for investing in ATM and airport infrastructure is not always well-articulated, benefits thereof fall to airspace and airport users and national economies rather than the investor (Air Navigation Service Provider - ANSP) himself. ATM and airport investments have long-lead time requiring long-term planning and stability and in this respect the Policy underscores that ANSP shall operate as normal businesses within performance- driven framework based on solid business cases encouraging stable, long term investments. The policy highlights that Flexible Airspace Access solutions, including impact assessments, should be collaborative and respectful of the needs of all air transport stakeholders. It also highlights need for encouraging internship-style programs in conjunction with conventional aviation training centres to develop much needed next generation of aviation professionals. Industry could provide more real-world experience in partnership with both governmental and non-governmental education centres so as to ensure that future needs of aviation professionals would be adequately supplied to ensure unimpeded growth of the sector. PAGE 3 11 March 2017 A NATIONAL CIVIL AVIATION POLICY FOR SRI LANKA The policy identifies that the development of aerodromes in underserved or remote regions brings job creation, economic activity, greater connectivity and social integration to national economy. It is also important that revenues from charges levied on aviation activities to be more dedicated to funding key components of a sustainable aviation system. Holistic view of infrastructure planning is key and it needs to take into account unique needs of all users in order to benefit comprehensively from wider range of aviation activity in localities around the country. PAGE 4 11 March 2017 A NATIONAL CIVIL AVIATION POLICY FOR SRI LANKA 2. Acknowledgement The Government of Sri Lanka (GoSL) would like to thank all stakeholders for their valuable input and active participation in the discussion sessions of this policy. The GoSL is grateful to the final drafting committee consisting of The Ministry of Transport & Civil Aviation, Civil Aviation Authority of Sri Lanka (CAASL), Airport & Aviation Services (Sri Lanka) Limited (AASL), Attorney General’s Department, SriLankan Airlines, Sri Lanka Airforce, Board of Airline Representatives (BAR), Sri Lanka Association of Airline Representatives (SLAAR) and Domestic Aviation Representatives for their fullest cooperation in finalizing the policy paper. PAGE 5 11 March 2017 A NATIONAL CIVIL AVIATION POLICY FOR SRI LANKA 3. Introduction 3.1 The aviation industry is of national strategic importance to Sri Lanka as the country depends on air transport to link people and valued with the rest of the world. More importantly, aviation is a critical enabling industry for the broader economy. A safe, secure, efficient, regular and environmentally responsive aviation industry reinforces a range of trade and commerce, tourism, investment activities that contribute significantly to our economic prosperity. 3.2 With the right policy initiatives, aviation can be the wheel that spins out economic opportunities by expanding the existing markets, opening new markets, driving productivity and improving competitiveness. 3.3 Aviation's contribution to the Sri Lankan economy is undisputed, it contributes a total of 297,500 jobs and USD