By: Staff Writer
November 28, Colombo (LNW):Airport and Aviation Services (Sri Lanka) Ltd, or AASL, is pushing ahead with key development projects and digital innovations to improve Sri Lanka’s aviation infrastructure, after a recent decline in profit.
The sattae owned enterprise announced the tender for Bandaranaike International Airport Development Project Phase 2 (the BIA Project), which aims to accomplish the full scope of the Project funded by the JICA’s ODA loan by the end of 2027 to meet the growing passenger demand in Sri Lanka.
In the end of July 2024, upon the signing of the Memorandum of Understanding on debt restructuring by members of Official Creditors’ Committee and the Government of Sri Lanka, JICA has restarted disbursement for all the JICA-funded projects, including the BIA Project.
JICA recognizes the BIA Project as one of the most important projects between Sri Lanka and Japan, and wishes that the new airport facilities to be built under the project will contribute to inviting more foreign visitors to Sri Lanka and increasing country’s foreign currency earnings. JICA will continue to provide AASL with assistance necessary to complete the BIA Project.
AASL will employ a local contractor using its own money to complete unfinished substructure work at BIA, abandoned by a Japanese contractor. The work, which will be overseen by the same consultant employed for the project, is vital as BIA is already operating over capacity.
Concomitantly, AASL is integrating advanced digital technologies aimed at smoothening and enhancing passenger experiences. Advantages with regards to self-check-in kiosks, biometric security systems, and AI-driven analytics enhance efficiency and security, while mobile applications with contactless services offer safe and more convenient travel solutions in the post-pandemic era.
On November 1, 2024, AASL revised an agreement with Japan Airport Consultants, Inc. and Nippon Koei Co., Ltd., furthering Phase II, Stage 2 of the Bandaranaike International Airport Development Project. Funded by the Japan International Cooperation Agency, the project aims at completing a new passenger terminal and associated infrastructure. Procurement for construction is already in process.
Meanwhile, AASL is also setting up a dedicated unit at BIA to report on flight delays in real-time, in collaboration with SriLankan Airlines, under the guidance of Minister Vijitha Herath. Efforts are being made to reduce delays and improve facilities for waiting passengers.
Long-term plans for sustainability at AASL also include solar energy expansion, waste management, and green building. Furthermore, the organization is looking into alternative aviation fuels and other emerging eco-friendly technologies to put Sri Lanka’s airports on par with global trends of sustainable aviation.
Efforts are underway to rejuvenate Mattala Rajapaksa International Airport (MRIA) as a regional hub. Infrastructure enhancements to the runway and terminals aim to attract international carriers and increase cargo operations, particularly from low-cost airlines.
Despite these advancements, AASL’s financial performance in early 2024 saw a decline. Total revenue reached Rs. 20,823 million, with aeronautical and non-aeronautical revenues contributing Rs. 3,924 million and Rs. 16,824 million, respectively.
However, the profit before tax declined 13% to Rs. 17,324 million from Rs. 19,885 million recorded in the corresponding period of 2023. The decline is mainly due to higher personnel costs arising from salary revisions for air traffic controllers and staff.Though there are still financial challenges, AASL remains committed to its vision of growth, sustainability, and enhanced services, signaling promising progress for Sri Lanka’s aviation sector
