BIA Terminal II Construction Likely Delayed Until June 2026

Sri Lanka’s long-delayed Bandaranaike International Airport (BIA) Terminal II expansion is now expected to face further setbacks, with construction mobilisation unlikely to begin before June 2026, the Ministry of Ports and Civil Aviation announced.

Deputy Minister Janitha Ruwan Kodithuwakku said authorities are awaiting Japan International Cooperation Agency (JICA) concurrence on the technical evaluation of two shortlisted Japanese contractors bidding to take over the halted project. Financial bids are expected to be opened by the end of December once JICA approval is received.

However, he noted that signing agreements and initiating work will take additional time because Sri Lanka must negotiate new gap financing with JICA. The existing loan is insufficient to complete the airport expansion, and officials will only know the funding shortfall after the contractor is selected.

The Terminal II project—designed to increase BIA’s passenger capacity from six million to 16 million has remained stalled since 2022 due to the economic crisis.

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