By: Staff Writer
June 25, LNW (Colombo): Kataunayake Bandaranaike International Airport undergoes major renovation at present in a fast-tracked plan consisting of 4 to 5 discrete sub-projects to expand the capacity of the existing Terminal 1.
This local project aims to lift Terminal 1’s handling capacity from 6 million to 10 million passengers annually. It is being funded entirely via local state resources to bypass foreign funding delays.
In the interim, the airport has set up 14 extra check-in gates inside a temporary marquee structure with private sector assistance to handle an additional 10 to 20 aircraft daily.
To manage the heavy congestion while BIA terminal 2 is stalled, Deputy Minister of Ports and Civil Aviation Janitha Ruwan Kodithuwakku announced a Rs. 15 billion structural overhaul of terminal 1 funded completely by local resources.
The project layout included, the expanding of main departure zone to manage peak-hour passenger backlogs.
The other components are constructing and installing additional permanent check-in counters to reduce wait times and completely restructuring the physical layout of the arrival hall to handle higher foot traffic and streamline passenger flow into the country.
It has been plan to Replace and expand the current carousel lines with a higher-capacity automated system to prevent luggage pile-ups, while enlarging the square footage allocated for duty-free shopping areas.
The architectural designs are finalized, and all regulatory approvals have been cleared. One of the core sub-projects has already been officially awarded, while the remaining contracts are currently in the final stages of local government allocation, he revealed.
The construction and expansion of the BIA Terminal 2 (often mixed up with Terminal 1 upgrades) is currently in a critical re-tendering and evaluation phase, he disclosed.
Ground mobilisation and the restart of physical construction are expected to begin by June-July 2026.
The project had stalled at just 6percent progress in December 2022 when the Japan International Cooperation Agency (JICA) froze its concessionary loan following Sri Lanka’s sovereign debt default.
JICA has officially agreed to resume funding, inflicting new life into the project after the completion of Sri Lanka’s debt restructuring,
The Ministry of Ports and Civil Aviation has concluded its technical evaluation of the prospective Japanese contractors bidding for the new Package A1 contract (meant to complete the main terminal building, piers 2 and 3, and elevated roadways). The evaluation has been sent to JICA for final concurrence.
The government expects JICA’s final green light to open the financial price bids as soon as possible.
Construction mobilisation will be officially launched somewhere between June or July 2026.
Following the awarding of the contract to the successful bidder, the period for construction becomes legally binding at thirty months, and thus, Terminal 2 would officially become operational by late 2028 or early 2029.
However, owing to the dramatic rise in market and construction materials prices since the signing of the initial agreement, the initial JICA loan has now become insufficient.
The government is actively negotiating with JICA and the Japanese government to secure an estimated US$450 million to $564 million in extra gap financing to cover the inflation adjusted costs.