A new Domestic Air Terminal is to be constructed at Bandaranaike International Airport (BIA) next year at a cost of Rs. 800 million to facilitate international passengers travelling to domestic destinations.
Presenting the 2027 Budget in Parliament today (12), President Anura Kumara Dissanayake said the project would be implemented by Airport and Aviation Services (Sri Lanka) Limited (AASL), providing international passengers with more convenient connections to domestic air services.
The announcement comes as the Government plans to expand and modernise the country’s aviation infrastructure to accommodate increasing passenger numbers.
The President said the first terminal at BIA, originally designed to handle approximately 6 million passengers annually, was currently operating beyond its intended capacity. Passenger traffic is projected to reach 16 million by 2032.
To address the growing demand, AASL has already begun work on increasing the first terminal’s annual capacity from 6 million to 9 million passengers, with an investment of Rs. 15 billion.
Meanwhile, construction of the long-delayed second terminal is expected to begin shortly with assistance from the Japan International Cooperation Agency (JICA).
Further improvements at the airport include a Rs. 400 million investment in a new car park to ease vehicle congestion and an allocation of Rs. 200 million for a feasibility study on widening the road in front of the airport and constructing a flyover.
The Government also plans to establish a re-export hub at BIA through a Build-Operate-Transfer (BOT) arrangement involving private sector participation. The initiative aims to develop the airport into a regional air cargo handling centre.
Ratmalana and Mattala airport development
Meanwhile, Ratmalana International Airport is to be developed as a centre for pilot training, domestic flights, business aviation and regional air services.
A Rs. 6 billion project to rehabilitate and extend its runway is scheduled to begin in 2027. The project will increase the runway length from 1,400 metres to 1,771 metres.
The Government is also seeking new investors to develop Mattala International Airport, which has recorded cumulative losses exceeding Rs. 70 billion since beginning operations in 2013.
Expressions of Interest have already been completed for investments in airport operations, data centres, food and catering services, and aircraft services and maintenance.
Requests for Proposals will be called from shortlisted companies, with the Government expecting to select new investors within the coming year.
