Construction of BIA Terminal 2 Expected to Resume by Year-End

14-Jun-2026

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The Government plans to recommence construction of the long-delayed Terminal 2 project at Bandaranaike International Airport before the end of this year.

The matter was discussed during a meeting held yesterday between Minister of Ports, Civil Aviation and Energy Anura Karunatilaka and Japanese Ambassador Mizukoshi Hideaki.

The primary objective of the discussions was to expedite approvals relating to financing and contract values so that construction can resume by November.

The project was initially launched in December 2020 under a JICA-funded loan programme valued at 75 billion Japanese yen. Construction was suspended in April 2022 due to Sri Lanka’s economic crisis.

Although work resumed in 2024, financial constraints caused another suspension in March 2025. Japanese authorities have since indicated their willingness to provide additional financing to complete the remaining work, citing confidence in the current Government’s economic management.

Minister Karunatilaka stated that discussions with the Ministry of Finance regarding the required loan arrangements would be held promptly. He also noted that President Anura Kumara Dissanayake has taken a special interest in the project due to its national significance.

JICA representatives proposed a two-stage approach involving the finalisation of loan agreements followed by the awarding of contracts based on negotiated prices. They indicated that the entire project could be completed within 30 months of construction recommencing.