The country’s main international gateway has been operating for years with expansion plans stuck in limbo.
Now, those plans appear to be moving again.
Construction of the second passenger terminal at Bandaranaike International Airport is expected to resume in November this year, according to the Ministry of Ports and Civil Aviation.
The project was suspended in April 2022 as the economic crisis disrupted funding and halted several large infrastructure developments.
Project back on track
The latest update emerged following a meeting held yesterday (12) between Minister of Ports and Civil Aviation Mr. Anura Karunatilleke, Japanese Ambassador Isomata Akio, and representatives of the Japan International Cooperation Agency.
The main focus of the discussions was to speed up approval of the loan amount and contract value required for the project.
According to the ministry, construction can restart once those approvals are completed.
Officials expect the terminal to be completed within 30 months from the date construction resumes.
Japanese funding remains key
The second terminal project originally began in December 2020 with financial support from the Government of Japan.
A loan facility worth 75 billion yen was provided to fund the development.
However, economic conditions forced work to stop less than two years later.
Since then, authorities have restarted the procurement process. Bidding concluded in 2025 and the contractor selection process is now in its final stage.
The ministry said discussions between the Government, the Government of Japan, and JICA have resulted in Japanese support for the project moving forward.
During the meeting, the JICA delegation proposed finalizing the loan amount and signing the loan agreement before proceeding with contract awards based on negotiated prices.
For the aviation sector, the project is seen as an important step toward increasing passenger handling capacity and supporting future growth in tourism and air travel.
Last modified: June 13, 2026
