By: Staff Writer
June 14, Colombo (LNW): Sri Lanka’s long-stalled Bandaranaike International Airport (BIA) Terminal 2 project appears to be edging closer to revival after a series of high-level discussions between Government officials and representatives of the Japan International Cooperation Agency (JICA), the project’s principal financier.
The discussions, held recently , brought together Ports, Civil Aviation and Energy Minister Anura Karunathilaka and a Japanese delegation led by Ambassador Isomata Akio. The meeting focused primarily on resolving financial and contractual issues that have repeatedly delayed one of the country’s largest aviation infrastructure developments.
According to officials familiar with the discussions, both sides expressed optimism that construction activities could recommence by November this year if pending approvals are secured without further delay. The project, originally launched with significant expectations, has faced multiple interruptions since work first began.
Sources attending the meeting said the Government pledged to expedite discussions with the Finance Ministry to obtain approval for the additional loan funding required to complete the terminal. Minister Karunathilaka reportedly assured the Japanese delegation that efforts would be made to clear outstanding financial hurdles as quickly as possible.
The meeting was attended by Deputy Minister Janitha Ruwan Kodituwakku, Ministry Secretary W.W.S. Mangala, senior Civil Aviation Authority officials and other ministry representatives, underlining the importance attached to the project by policymakers.
Significantly, officials revealed that President Anura Kumara Dissanayake has taken a direct interest in the project, recognising its strategic importance to Sri Lanka’s economic recovery and aviation sector. Additional discussions at the highest levels of Government are expected in the coming weeks.
JICA representatives outlined a two-step strategy for moving the project forward. The first phase involves securing the necessary financing arrangements and finalising revised loan agreements. The second phase would focus on awarding construction contracts based on negotiated prices already discussed between stakeholders.
Japanese officials also presented an ambitious completion schedule, indicating that the terminal could be finished within 30 months after construction resumes.
The project was initially launched in December 2020 with financial support from the Japanese Government through a ¥75 billion loan package administered by JICA. However, Sri Lanka’s economic crisis forced construction to halt in April 2022, creating uncertainty over its future.
Although work briefly resumed in 2024, the project encountered another setback in March 2025 when funding shortages once again interrupted progress. Months of negotiations followed, eventually resulting in an agreement to secure additional financing needed to complete the facility.
Industry analysts note that the successful completion of Terminal 2 would significantly increase airport capacity, improve passenger handling capabilities and strengthen Sri Lanka’s ambition to become a regional aviation hub. The project is also viewed as a key component of broader efforts to revive tourism, attract investment and accelerate post-crisis economic growth.
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