By:Staff Writer
August 26, Colombo (LNW): SriLankan Airlines is set to significantly expand its cargo operations by the end of 2025, positioning Colombo as a vital regional hub for transhipment and e-commerce. The national carrier is on track to double its current cargo handling capacity at the Bandaranaike International Airport (BIA) with the completion of a state-of-the-art cargo terminal—a key part of its long-term strategy to strengthen Sri Lanka’s role in global air logistics.
Currently handling 250,000 metric tons of freight annually, SriLankan Airlines’ new terminal will add another 250,000 metric tons to its capacity, boosting total throughput to over 500,000 metric tons per year. “We saw the need for expansion even before the COVID-19 pandemic,” said Shehan Fernando, Cargo Operations Manager at SriLankan Airlines. “Cargo volumes were on the rise, and we needed to plan ahead to meet future demand.”
Although global air freight volumes were impacted by the pandemic, construction of the terminal continued, underscoring the airline’s commitment to long-term development. The terminal building has now been completed, with final cabling and IT infrastructure installations underway. Authorities are expected to hand over the facility to the airline by the end of this year.
Strategically located in the Indian Ocean, Sri Lanka is ideally positioned to serve as a regional cargo hub. Fernando noted that Colombo has the potential to divert excess cargo from India and facilitate shipments between Australia, Europe, and Southeast Asia. “Planes fly over our airspace every day. With this new terminal, we can become a key transhipment point in the region,” he explained.
Despite its potential, Colombo’s existing cargo infrastructure faces several constraints, particularly during peak periods. The expansion is therefore timely, with experts and stakeholders calling for further investment in supporting facilities such as road connectivity, customs clearance, digital logistics platforms, and temperature-controlled storage to fully unlock the benefits of the new terminal.
The upcoming terminal will be dedicated to imports, allowing the existing import terminal to be repurposed into a perishable goods centre and an e-commerce hub. This is crucial as demand grows for efficient handling of pharmaceuticals, fruits, seafood, and online retail shipments from platforms like AliExpress and eBay.
In addition, the reorganisation of current terminals will create specialised zones for exports, perishables, and virtual logistics, including a planned Korea hub. This modernised structure will enhance operational efficiency and diversify the range of cargo SriLankan Airlines can manage.
Fernando believes this development marks a turning point for the country’s air freight industry. “Business is changing—people are investing, importing, and getting into new ventures. With this upgrade, we aim to attract more business through Colombo and expand our role in global cargo movements.”
To fully realise this vision, stakeholders stress the urgent need for enhanced multimodal transport links, warehousing, and customs digitisation—critical elements for transforming Colombo into a leading logistics and e-commerce gateway in South Asia.
