A new Domestic Air Terminal will be constructed within the premises of Bandaranaike International Airport (BIA) next year, with an investment of Rs. 800 million, to provide greater convenience for international passengers travelling to domestic destinations.
Presenting the 2027 Budget in Parliament today (12), President Anura Kumara Dissanayake said the project would be undertaken by Airport and Aviation Services (Sri Lanka) Limited (AASL), enabling international passengers to connect more conveniently with domestic air travel.
The announcement comes as the Government moves to expand and modernise the country's aviation infrastructure to meet growing passenger demand.
The President noted that although the first terminal of BIA was designed to handle approximately 6 million passengers annually, it is currently handling a higher number. Passenger demand is projected to reach 16 million by 2032.
Accordingly, work has already commenced to increase the capacity of the first terminal from 6 million to 9 million passengers, with an investment of Rs. 15 billion by AASL.
Meanwhile, construction of the long-delayed second terminal is expected to commence shortly with assistance from the Japan International Cooperation Agency (JICA).
Further measures to improve airport facilities include a Rs. 400 million investment in a new car park to ease vehicle congestion and a Rs. 200 million allocation 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 under a Build-Operate-Transfer (BOT) arrangement with private sector participation, with the aim of developing the airport into a regional air cargo handling centre.
Separately, Ratmalana International Airport will be developed for pilot training, domestic, business and regional aviation. A Rs. 6 billion runway rehabilitation and extension project will commence in 2027, increasing the runway length from 1,400 metres to 1,771 metres.
Meanwhile, the Government is seeking new investors to develop Mattala International Airport, which has accumulated losses exceeding Rs. 70 billion since commencing operations in 2013.
Expressions of Interest have already been concluded for investment in airport operations, data centres, food and catering services, and aircraft services and maintenance. Requests for Proposals will be invited from shortlisted companies, with the Government expecting to select new investors within the coming year.
