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Sri Lanka's Airport Tender: Is the State Facing Another $190 Million Cost Escalation?
The disqualification of one of two bidders for the Bandaranaike International Airport expansion has left the Government negotiating with a single contractor. Now, allegations of an additional US$190 million demand raise urgent questions about competition, procurement delays and the protection of public funds.
Sri Lanka is still recovering from one of the gravest economic crises in its history. Every dollar of public expenditure matters. Every foreign-funded development project must be subjected to rigorous scrutiny, and every government institution entrusted with procurement decisions must be able to demonstrate that it has protected the interests of the people.
Against this background, troubling questions have emerged concerning the long-delayed expansion of Bandaranaike International Airport (BIA), one of the country's most strategically important infrastructure projects.
At the centre of the controversy is a straightforward question:
How did an international tender that attracted two bidders end up with only one eligible contractor, and could that loss of competition now expose Sri Lanka to an additional US$190 million in costs?
The answer deserves immediate public scrutiny.
From competitive tender to single-bidder negotiations
The airport expansion project, financed through Japanese development assistance, was intended to transform Sri Lanka's principal international airport, increase passenger capacity and strengthen the country's position as an aviation and tourism hub.
The Japan International Cooperation Agency (JICA) formally welcomed the renewed tender process in September 2024, identifying the project as an important element of economic cooperation between Japan and Sri Lanka.
Two bidders subsequently participated in the tender: Japan's Taisei Corporation and the Sojitz–Larsen & Toubro consortium.
However, following the technical evaluation, the Sojitz–L&T consortium was declared technically non-responsive, leaving Taisei as the sole responsive bidder. The selection subsequently received JICA's concurrence, according to reporting published in July 2026.
The legal and technical justification for Sojitz's disqualification must be assessed against the actual tender documents. A bid that fails mandatory requirements cannot simply be retained to preserve competition.
Nevertheless, the elimination of the only competing bidder has fundamentally changed the Government's commercial negotiating position.
With no alternative financial bid remaining in contention, the authorities must now demonstrate how they intend to establish that the final contract price represents fair market value.
This is not merely a procedural question. It goes to the heart of protecting public money.
The alleged US$190 million increase: A question that cannot be ignored
Information concerning the ongoing negotiations raises an especially serious concern: that Taisei is seeking approximately US$190 million above its originally quoted tender price.
If substantiated, the proposed increase would represent an extraordinary additional financial commitment.
For perspective, US$190 million is equivalent to approximately Rs. 45 billion at an illustrative exchange rate of Rs. 300 per US dollar.
That is money which could otherwise support essential public infrastructure, healthcare, education, disaster preparedness and other national priorities.
It is also a substantial amount of foreign exchange for an economy still working to strengthen its external financial position.
The authorities must therefore disclose whether such an increase has actually been requested, the contractual basis on which it is being sought and whether the Government has any legal obligation to consider it.
Can a delay justify an additional US$190 million?
One explanation reportedly being advanced is that considerable time has elapsed since the tender process began, exposing the contractor to increases in labour, materials, equipment and other construction costs.
Construction inflation and geopolitical disruptions are legitimate commercial considerations. Major international contracts frequently contain provisions addressing price adjustments, changes in law, force majeure and exceptional cost movements.
But these provisions exist precisely because contractors and employers must allocate foreseeable commercial risks before submitting and accepting bids.
A passage of time does not, by itself, entitle a bidder to disregard its quoted price or demand an unlimited revision.
Questions have also been raised about whether the applicable tender conditions limit permissible price adjustments to approximately US$20 million over the contract period.
That alleged ceiling requires verification against the actual bidding documents. If confirmed, the authorities must explain how any substantially larger adjustment could be justified within the contractual and procurement framework.
If the original tender does not permit the proposed increase, the Government should not treat it as an unavoidable cost merely because negotiations have reached an advanced stage.
The correct response would be to examine the available contractual remedies and procurement alternatives, including the financial and operational consequences of any further delay.
Who bears responsibility for the delay?
The Government cannot assess the proposed contract price without also examining how the project reached its present position.
The renewed tender was announced in September 2024. Bids closed in March 2025, following extensions to the submission deadline.
According to published audit reporting, the Technical Evaluation Committee completed its evaluation in November 2025, while financial proposals were opened only in April 2026.
By July 2026, negotiations over the contract amount were still continuing.
This prolonged process raises an unavoidable question:
If delays in evaluation, approvals or negotiations have materially increased project costs, who is accountable for those delays?
Responsibility cannot automatically be assigned to any one institution without examining the relevant records. Some delays may have been justified by technical complexity, financing requirements or mandatory procurement procedures.
But taxpayers are entitled to know whether every stage was conducted efficiently, whether avoidable delays occurred and whether the additional costs could have been prevented.
An institution entrusted with safeguarding public resources must be able to explain not only why it selected a particular bidder, but also whether its decisions preserved value for money.
The Auditor General's findings make the matter even more serious
The airport project already carries a significant history of financial losses and additional expenditure.
According to the Auditor General's findings reported by the Sunday Times, substantial amounts were paid in connection with the termination of the earlier construction contract.
The report identified termination-related payments of approximately JPY 7.76 billion and Rs. 6.64 billion during 2025.
It also highlighted expenditure on protective works and other activities undertaken while the project remained incomplete.
These findings do not establish misconduct by the current tender participants. They do, however, demonstrate the considerable financial consequences of the project's prolonged interruption.
The public is therefore entitled to ask how much more Sri Lanka may ultimately pay before the new terminal becomes operational.
A comprehensive accounting should identify the original contract value, payments already made, termination-related settlements, preservation costs, consultancy fees, financing charges and any proposed increase under the replacement contract.
Without that information, it is impossible to determine the true cost of completing the airport expansion.
A troubling question about the integrity of public procurement
The most serious concern is not simply whether one contractor is requesting a higher price.
It is whether Sri Lanka's procurement framework is adequately protecting the public interest when a competitive tender effectively becomes a single-bidder negotiation.
A properly conducted technical evaluation may legitimately eliminate a non-compliant bidder. But when that decision leaves only one bidder, it becomes especially important to demonstrate that the evaluation was objective, consistent and supported by documented evidence.
The public should be given confidence that the disqualification was neither arbitrary nor designed to favour any particular participant.
Equally, the remaining bidder must not be permitted to exploit the absence of competition to obtain unjustified commercial concessions.
These concerns establish corruption or wrongdoing and, the combination of a single responsive bidder, prolonged delays, undisclosed financial negotiations and allegations of substantial price escalation creates a compelling case for independent scrutiny.
Transparency is the most effective way to resolve these questions.
Seven questions the Government must answer
The Ministry of Ports and Civil Aviation, AASL and the relevant procurement authorities should urgently clarify:
- What was Taisei's original financial bid, and has an additional US$190 million been requested? If so, what is the precise amount and justification?
- Why was the Sojitz–L&T consortium disqualified? Which mandatory technical requirements were not satisfied, and were the same standards consistently applied to both bidders?
- What do the tender documents permit regarding price escalation? Is there a contractual ceiling, and what legal basis exists for any adjustment beyond it?
- Why did the procurement process take so long? Which stages contributed most to the delay, and were those delays unavoidable?
- What is JICA's position on the final price and financing arrangements? Has any proposed additional cost been reviewed and approved?
- What is the full cumulative cost of the airport expansion to date? This should include prior payments, termination costs, preservation works, consultancy expenses and the proposed replacement contract.
- Has an independent value-for-money assessment been undertaken? If so, will the Government publish its conclusions before any final award?
These are reasonable questions concerning a project financed through public resources and international development assistance.
Development must proceed—but not at any price
Sri Lanka urgently needs the expanded airport.
The existing infrastructure constrains the country's long-term aviation ambitions. A modern terminal would support tourism, international connectivity, investment and future economic growth.
Japan has remained an important development partner, and JICA's continued commitment to the project deserves recognition.
But the importance of completing the airport cannot become a justification for accepting costs that have not been properly examined.
The Government must balance the economic cost of further delays against the financial consequences of accepting any proposed contract increase.
That requires an independent technical and commercial assessment—not an assumption that the sole remaining bidder's revised price must necessarily be accepted.
Public money is not an unlimited contingency fund
Sri Lankans have endured years of economic hardship, higher taxation and pressure on household incomes.
At a time when the public is being asked to exercise financial discipline, the institutions spending public money must be held to the same standard.
An alleged US$190 million increase in a major infrastructure contract is not a minor administrative adjustment. It is a matter of national financial significance.
If the increase is commercially and contractually justified, the Government should publish the evidence.
If it is not justified, the Government should protect the public purse and pursue lawful alternatives.
And if an independent investigation identifies negligence, procedural irregularities, conflicts of interest or corrupt conduct, the responsible parties should be held accountable through the appropriate legal processes.
Sri Lanka cannot afford a procurement culture in which delays accumulate, competition disappears and the final bill grows without a transparent explanation.
The airport must be completed. But it must be completed through a process that is lawful, accountable, commercially defensible and demonstrably in the public interest.
The immediate priority is clear: before any final contract award, disclose the proposed price, explain the escalation, publish the basis of the tender evaluation and establish whether Sri Lanka is receiving genuine value for money.
The public deserves nothing less.
26-Year-Old Arrested Over Rs. 151,000 Online Business Fraud
A 26-year-old resident of Sooriyawewa has been arrested in connection with an alleged financial fraud involving promises of substantial earnings through an online business.
The arrest was made yesterday (20) by the North Western Provincial Unit of the Computer Crime Investigation Division following an investigation initiated in response to a complaint regarding the alleged scam.
According to the complaint, the suspect had contacted the complainant through the Telegram messaging platform and claimed that significant profits could be earned through online business activities.
The suspect had allegedly promised earnings amounting to Rs. 135,072,200, subsequently inducing the complainant to transfer Rs. 151,000 to a bank account belonging to the suspect.
The individual was arrested on suspicion of involvement in the alleged fraud and providing assistance and support in connection with the offence.
The North Western Provincial Unit of the Computer Crime Investigation Division is conducting further investigations into the incident.
Veteran Actor Rahal Bulathsinhala Passes Away at 73
Veteran Sri Lankan actor Rahal Bulathsinhala has passed away at the age of 73 while receiving treatment at a private hospital, family sources have confirmed.
Bulathsinhala was a familiar figure in Sri Lankan entertainment, having contributed to the country's performing arts throughout his career.
Further details regarding his passing have not yet been disclosed.
Faiszer details how President AKD led legal effort to save Anojan from death sentence
President’s Counsel Faiszer Musthapha said that Anojan Sivarasa would almost certainly have faced execution in Saudi Arabia without the direct legal intervention of the President and the Sri Lankan government.
He made these remarks in Parliament yesterday (20).
Sivarasa Anojan, a young Sri Lankan worker sentenced to death by a Saudi appellate court, was spared after the Saudi Supreme Court overturned the capital sentence following swift diplomatic and legal action.
Learning from the bitter outcome of the Rizana Nafeek case, which was heavily politicised, the President instructed that this matter be resolved strictly through official judicial channels.
Musthapha stressed that without prompt guidance from top state leadership and the Foreign Minister, the likelihood of Anojan losing his life remained extremely high.
On the President's instructions, a specialized legal delegation comprising Additional Solicitor General Azad Navavi, President’s Counsels Faiszer Musthapha and Upul Kumarapperuma, and Attorney-at-Law Hafeel Farisz travelled to Saudi Arabia to submit filings directly into the kingdom's court system.
The Sri Lankan legal team undertook the mission during a period of high regional tension when Houthi rebel attacks had disrupted international flight paths.
Navigating alternative transit routes to reach the kingdom, the lawyers appeared before the Saudi Supreme Court to challenge the death sentence, which had been imposed after a transcript of a private Facebook conversation was transmitted to authorities.
The Supreme Court subsequently set aside the capital punishment.
Although the Supreme Court invalidated the execution order, legal proceedings remain ongoing with a special hearing scheduled at the Saudi High Court to commute the remaining penalty. Political observers noted that the unified mobilization of state resources for a single citizen, regardless of ethnicity, religion, or party affiliation, set a major benchmark for national harmony.
Buddhist Monks’ Protest for Gnanasara Thero’s Release Enters Seventh Day
A group of Buddhist monks staging a Satyagraha at Viharamahadevi Park in Colombo is continuing its protest for the seventh consecutive day today (October 22), calling for the release of Venerable Galagoda Aththe Gnanasara Thero.
The demonstration commenced on October 16 after the monks sought intervention from the authorities regarding their demand. Despite discussions with officials, the protesters have maintained their position that the campaign will continue until Gnanasara Thero is released.
Before moving to Viharamahadevi Park, the monks assembled outside the Presidential Secretariat and later visited the Ministry of Buddhasasana. They held talks with the Ministry’s Secretary but subsequently expressed dissatisfaction with the outcome of the discussions.
Following the meeting, the group relocated to Viharamahadevi Park, where the monks announced their decision to continue the Satyagraha until their demand was met.
The protest also saw tensions between the demonstrators and police on its opening day, October 16, when an attempt to set up a temporary structure at the site led to a confrontation.
The monks remain at the park as the demonstration enters its seventh day, reiterating their determination to continue the protest until Venerable Galagoda Aththe Gnanasara Thero is released.
Two blackouts under NPP govt. expose serious failures in national grid management - Marikkar
Samagi Jana Balawegaya (SJB) MP S. M. Marikkar criticised the National People’s Power government in Parliament yesterday (20) following Sri Lanka’s second nationwide power outage in recent months.
Highlighting the severe disruption caused when a total grid collapse left 22 million citizens without electricity for roughly six hours, he said that two nationwide blackouts under the NPP government have exposed serious failures in national grid management.
He claimed that financial losses from power sector mismanagement have also mounted rapidly alongside the administrative failures surrounding these blackouts.
Marikkar pointed out that the current administration experienced its first total grid failure in February 2025, after which an official investigative committee issued clear recommendations to prevent future system collapses.
He demanded that the Energy Minister inform Parliament whether those corrective measures were ever put into practice, accusing the government of total indifference.
Turnaround costs and operational failures related to coal procurement have further compounded the crisis.
Marikkar revealed that the import of substandard coal alone caused a direct loss of over Rs. 18 billion, while an extra Rs. 26 million was spent on third party laboratory testing for six coal shipments.
Furthermore, the reliance on inferior coal forced the government to spend over Rs. 20 billion on emergency supplementary power purchases between January and September.
He asserted that the combined financial damage from these procurement decisions is double the loss recorded during the Central Bank bond scandal.
Opposition seeks PSC to investigate circumstances surrounding death of 'Kavanthissa'
Sri Lanka’s opposition lawmakers have moved to establish a parliamentary inquiry into the death of the famed tusker Kavanthissa.
Opposition Leader Sajith Premadasa, alongside several fellow parliamentarians, signed a joint motion in Parliament on Wednesday (20) to request the immediate appointment of a Special Parliamentary Select Committee.
Public concern over the preservation of the island's wildlife heritage has intensified following the demise of the revered animal.
The proposed PSC will be tasked with conducting a thorough probe into the precise circumstances leading to the elephant's death, while evaluating whether state agencies and relevant authorities discharged their statutory duties effectively.
Opposition MPs emphasised that establishing the PSC is essential to fixing administrative accountability, addressing potential lapses in conservation oversight, and securing justice for Kavathissa.
Transport Authority Officer Arrested Over Rs. 100 Bribery Allegation
A timekeeping officer attached to the Gampaha Regional Office of the Road Passenger Transport Authority has been arrested over allegations of soliciting and accepting a bribe of Rs. 100 from a bus employee.
The arrest was made yesterday (20) at around 12.25 p.m. by officers of the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) inside the suspect’s office booth at the Raddolugama bus stand.
According to the allegations, the officer had solicited and accepted the money from an employee of a bus operating on Route No. 188 between Raddolugama and Colombo.
The bribe was allegedly requested in exchange for allowing the bus to begin its scheduled journey later than the stipulated departure time and permitting it to commence the journey under favourable conditions.
The arrested officer is scheduled to be produced before the Colombo Magistrate’s Court.
Govt. betrayed election promises by introducing sweeping security bills - Mujibur
Opposition MP Mujibur Rahman has accused the government of betraying its reform promises after introducing sweeping new security and anti-crime legislation to Parliament.
The Samagi Jana Balawegaya (SJB) lawmaker addressed the media in Colombo to raise concerns over the proposed laws on organised crime and the Protection of the State from Terrorism Bill.
Legal safeguards for personal liberties face growing uncertainty under the proposed legislative changes.
Rahman highlighted that the government had pledged during its election campaign to eliminate all statutory provisions that inflict hardship on the general public.
However, he stressed that the introduction of these bills represents a total reversal of those commitments, raising strong suspicions that the state seeks wide discretionary powers to detain citizens arbitrarily.
He expressed particular concern over provisions that could allow authorities to brand an individual as a criminal merely on the basis of their personal attire, dress style, haircut, or tattoos.
Rahman warned that the enactment of such expansive security laws signals an alarming shift towards state overreach and the erosion of fundamental civil freedoms.
Cremation of Ven. Keppetiyagoda Siriwimala Nayaka Thero to Be Held Today
The cremation ceremony of the Most Venerable Keppetiyagoda Siriwimala Nayaka Thero, Anunayaka of the Sri Lanka Ramanna Maha Nikaya and Chief Incumbent of the Getambe Rajopavanaramaya in Kandy, will be held today (21) at 2.00 p.m. at the Getambe Municipal Sports Ground under state patronage.
The late Thero played a significant role in the revival of Buddhism and culture in Sri Lanka, with the Getambe Rajopavanaramaya serving as the focal point of his religious and cultural activities.
His remains have been placed at the temple, where devotees and members of the public have been given the opportunity to pay their final respects.
According to Venerable Akurasse Siridhamma Wimala Thero, the custodian of the Getambe Rajopavanaramaya, religious observances are scheduled to begin at approximately 12.30 p.m.
The ceremonies will include members of the Maha Sangha offering robes in honour of the late Thero, followed by the traditional water-pouring ritual and the transfer of merits.
Upon completion of the religious rites, the remains will be taken from the temple to the Getambe Municipal Sports Ground for the cremation ceremony.
The final rites will be conducted under the patronage of senior prelates, including the Mahanayaka and Anunayaka Theros representing Sri Lanka’s three Buddhist chapters, alongside members of the Maha Sangha.
Sujeewa compares IMF to a 'loan shark' as he warns of deeper economic crisis
Samagi Jana Balawegaya (SJB) MP Sujeewa Senasinghe has warned that Sri Lanka risks collapsing into a deeper economic crisis due to its continued reliance on the International Monetary Fund.
Speaking in Parliament yesterday (20), he condemned current fiscal policies and challenged the government over its failure to review state engagement with the global lender.
Senasinghe claimed that severe financial hardship continues to spread across key sectors as government recovery measures fail to provide relief to ordinary citizens.
He said that while emergency international assistance becomes unavoidable during severe financial distress, global lending institutions function much like "loan sharks" focusing strictly on debt recovery.
He alleged that international lenders remain unconcerned with national development, choosing instead to enforce aggressive revenue collection, property taxes, and inheritance levies by placing maximum financial pressure on the public.
Furthermore, the opposition politician accused the government of breaking previous assurances to reassess its agreement with the IMF, leaving local industries and households to absorb the shock of rising living costs.
He highlighted that farmers, business owners, and consumers are facing mounting hardship, with many citizens now unable to afford basic essentials such as fuel.
Sri Lanka’s Azerbaijan pivot risks geopolitical blowback
Sri Lanka’s emerging energy engagement with Azerbaijan demands scrutiny beyond diplomatic photographs and official statements. At a time when the Middle East crisis threatens energy-market stability and major powers compete for influence over strategic resources, Colombo must demonstrate that its outreach to Baku is a carefully calculated economic strategy rather than another diplomatic initiative without a clear commercial destination.
Foreign Minister Vijitha Herath’s meeting with Azerbaijani President Ilham Aliyev during the CICA summit on October 14 and 15, 2026, placed energy cooperation alongside discussions on trade, investment and tourism. Engagement with Central Asian economies could broaden Sri Lanka’s economic options. But the government has yet to establish publicly, in the information provided, whether the talks have produced concrete supply commitments, financing arrangements or a timetable for implementation.
That information gap is critical when every additional dollar spent on energy affects Sri Lanka’s fragile external finances.
The Middle East crisis has demonstrated how quickly geopolitical instability can translate into higher oil prices, disrupted shipping, rising insurance premiums and renewed inflationary pressure. Sri Lanka, heavily dependent on imported petroleum, remains exposed to these external shocks regardless of where its suppliers are located.
Azerbaijan could potentially offer another source of supply, but diversification must be assessed in practical terms. Can its producers supply the quantities and specifications required by Sri Lanka? Can shipments reach the island at competitive costs? Would payment arrangements protect scarce foreign exchange? And could supply remain reliable during a wider international confrontation?
Without answers, the promise of energy cooperation risks becoming a headline rather than a solution.
The American dimension also warrants careful examination. The United States exercises substantial influence through financial institutions, dollar-based transactions, sanctions enforcement and international diplomatic relationships. Sri Lanka, meanwhile, needs foreign investment, access to international capital and continued cooperation with development partners while implementing economic reforms.
Nevertheless, there is no evidence in the supplied information establishing that Washington has directly pressured Sri Lanka to abandon energy cooperation with Azerbaijan. Treating such pressure as an established fact would confuse geopolitical possibility with documented policy. The government should clarify whether it has received any relevant diplomatic representations and whether proposed transactions raise identifiable sanctions or compliance concerns.
The challenge is to preserve strategic independence without creating avoidable financial or diplomatic exposure. Sri Lanka should neither reject commercially attractive Azerbaijani opportunities merely because of geopolitical sensitivities nor pursue them to demonstrate defiance towards another power.
The absence of publicly specified commercial terms is particularly concerning given the country's recent experience with foreign exchange shortages, costly emergency procurement and energy-sector vulnerabilities. Any new arrangement should disclose the procurement process, pricing formula, delivery obligations, payment conditions and allocation of commercial risks, subject to legitimate confidentiality requirements.
Parliamentary oversight and independent technical assessment should precede substantial commitments. Comparisons with alternative suppliers must include the full landed cost, not merely the quoted oil price. The government should also examine whether existing refining facilities can efficiently process the proposed crude grades.
Meanwhile, discussions with Kazakhstan, Uzbekistan and Tajikistan should be assessed individually rather than presented collectively as evidence of immediate economic transformation.
Sri Lanka needs more diplomatic options, not more diplomatic promises. The Azerbaijan initiative will deserve public confidence only when it produces verifiable commercial benefits, protects consumers and strengthens energy security without compromising the country's wider international relationships.
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