The long-delayed second passenger terminal project at Bandaranaike International Airport (BIA) moved a step closer to resumption following high-level discussions held yesterday between Ports, Civil Aviation and Energy Minister Anura Karunathilaka and a delegation from the Japan International Cooperation Agency (JICA) led by Japanese Ambassador to Sri Lanka Isomata Akio.
The meeting focused on accelerating approvals related to the project’s loan allocation and contract value, with both sides expressing their intention to restart construction work by November
this year.
Deputy Minister Janitha Ruwan Kodituwakku, Ministry Secretary W.W.S. Mangala, senior officials from the Civil Aviation Authority, and officials from the Ministry also attended the discussions.
During the meeting, Minister Karunathilaka assured the JICA delegation that discussions would be held with the Finance Ministry to secure approval for the necessary loan amount at the earliest opportunity.
It was also revealed that President Anura Kumara Dissanayake has taken a keen interest in the project due to its national importance, with further discussions expected at the highest level of Government in the coming weeks.
JICA representatives proposed a two-stage approach to move the project forward. The first phase would involve securing the required financing and finalising the loan agreements, while the second phase would focus on awarding the construction contract at the negotiated price.
The Japanese delegation also outlined an ambitious timeline, stating that the terminal could be completed within 30 months from the date construction officially resumes.
The Terminal 2 expansion project, considered one of Sri Lanka’s most significant aviation infrastructure developments, commenced in December 2020 with financial assistance from the Japanese Government through a ¥ 75 billion loan facilitated by JICA. However, construction was suspended in April 2022 following the country’s economic crisis.
Although work resumed in 2024, the project faced another setback in March 2025 when construction was halted due to inadequate loan funding. Following several rounds of negotiations between Sri Lanka and Japan, an agreement was eventually reached to provide the additional financing required to complete the project, reflecting renewed international confidence in the Government’s economic management.
The revival of the BIA Terminal 2 project is expected to significantly enhance Sri Lanka’s airport capacity, strengthen its position as a regional aviation hub, and support the country’s growing tourism and economic recovery efforts.