By: Staff Writer
April 06, Colombo (LNW): The long-delayed Phase II expansion of Colombo’s Bandaranaike International Airport—the largest construction contract in Sri Lanka’s history—has spiraled into controversy, with fresh revelations casting a shadow over the integrity of the bidding process.
At the center of the storm is the Sojitz-Larsen & Toubro (L&T) consortium, now facing explosive allegations ranging from international disqualification to legal concealment and questionable favoritism.
Global Red Flag: Sojitz Disqualified Abroad
Sojitz Corporation, a key member of the bidding consortium, was recently disqualified from a major airport expansion project in Egypt by the country’s sovereign aviation authority. Experts say this should be a wake-up call for Sri Lanka: if a globally credible nation deems Sojitz unfit for a project, how can they be trusted with ours?
Legal Skeletons in the Closet
Even more troubling, Sojitz has dragged the Sri Lankan government into international arbitration over a $30 million dispute with the Ceylon Electricity Board—an episode they omitted from their bid documents, violating mandatory disclosure rules. Industry leaders argue this alone should disqualify them.
Bid Manipulation and Procedural Violations
The tender, originally due on March 18, 2025, was controversially extended by a week—allegedly to accommodate Sojitz-L&T, who weren’t ready. The extension, granted after private meetings between government officials and the bidder, reeks of favoritism and breaks procurement norms. Critics say the move has undermined fair competition and eroded trust in public contracting.
L&T’s Troubled Track Record
Sojitz’s Indian partner, L&T, has its own history of incomplete projects, cost overruns, and legal disputes across the region—including arbitration cases against the Sri Lankan government. Together, the consortium appears to be leveraging legal loopholes, political connections, and procedural manipulation to stay in the race.
Compliance Crisis
Adding fuel to the fire, Sojitz’s subsidiary previously violated U.S. sanctions on Iran, paying a $5.2 million penalty in 2022. This calls into question the company’s internal compliance and risk management—essential pillars for executing a project of this scale.
National Stakes, Global Consequences
The airport expansion, backed by a Rs. 170 billion investment from the Japan International Cooperation Agency (JICA), is intended to boost Sri Lanka’s aviation capacity to 16 million passengers annually. With only two bidders—Taisei Corporation and Sojitz-L&T—industry insiders warn that awarding the contract to a discredited and possibly unqualified consortium could damage national interests and scare off future foreign investment.
Undermining Good Governance
This saga has exposed deeper flaws in Sri Lanka’s public procurement system. Allegations of hidden litigation, deadline manipulation, and opaque dealings have turned what should have been a flagship infrastructure initiative into a governance crisis. The outcome will be a litmus test for the Dissanayake administration’s commitment to transparency, accountability, and reform.
Call to Action
With national infrastructure, public trust, and international credibility at stake, civil society and business leaders are calling for a full investigation, a reset of the tender process, and strict enforcement of procurement guidelines. Anything less risks turning a vital national project into a symbol of systemic failure.
