BUSINESS

India-Backed Jaffna Airport Upgrade Set to Take Off

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By: Staff Writer

August 21, Colombo (LNW): Sri Lanka is set to embark on the second phase of developing Jaffna International Airport into a fully operational international gateway, with Transport, Highways, Ports and Civil Aviation Minister Bimal Rathnayake stressing the importance of balancing ambition with feasibility.

The airport, located in Palaly, Jaffna, has long been seen as a strategic link to South India and beyond. Originally a military airfield, it was upgraded in 2019 with Indian assistance to handle short-haul international flights, mainly to Chennai. However, the current runway length of 1,400 metres restricts operations to smaller aircraft, limiting its commercial viability.

Under the proposed modernisation, the runway is expected to be extended to at least 2,300 metres to accommodate narrow-body jets such as the Airbus A320 and Boeing 737. This would enable Jaffna to handle more direct international routes, reducing dependence on Colombo’s Bandaranaike International Airport. Upgrades will also cover taxiways, aircraft parking bays, and passenger terminal facilities.

Minister Rathnayake emphasised that a comprehensive feasibility study will guide the expansion. “We are determined to make Jaffna Airport a true international gateway, but it must be backed by a strong business plan. We do not want another Mattala situation where infrastructure exists without passengers,” he said, drawing parallels to the underutilised Mattala Rajapaksa International Airport.

India’s role remains pivotal in the project. New Delhi funded the initial renovation at a cost of nearly USD 20 million, and currently, two Indigo Airlines flights operate weekly from Chennai to Jaffna. Analysts say that with proper upgrades, Jaffna could attract at least 300,000 passengers annually, given the significant Tamil diaspora in South India, Europe, and Canada seeking direct links to Northern Sri Lanka.

While cost estimates for the second phase have not been finalised, aviation experts suggest runway extension and terminal upgrades could exceed USD 60 million. Funding options under discussion include a mix of government allocations, concessional Indian loans, and potential private partnerships.

Beyond passenger traffic, a fully modernised Jaffna Airport could boost Northern Sri Lanka’s economy by facilitating agricultural exports, seafood shipments, and tourism development. The Northern Province, still recovering from decades of conflict, has been lobbying for enhanced connectivity to tap into regional trade and diaspora-driven tourism.

Tender calls for the expansion of the passenger terminal are expected to be announced within the next month, marking the first step of the second phase. However, the government insists expansion will only proceed after ensuring commercial sustainability.

For Sri Lanka, Jaffna Airport represents more than infrastructure—it is a test case of whether careful planning, regional cooperation, and economic necessity can combine to deliver lasting value, unlike earlier projects that became white elephants.

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