The Sri Lanka airport terminal expansion is moving ahead as authorities prepare to begin construction on a new Japan-funded facility by mid-2026. The long-delayed project is now gaining momentum as tender evaluations near completion and plans shift toward execution.
Japan-funded Sri Lanka airport terminal set for construction launch in mid-2026
Sri Lanka’s government announced renewed progress on the long-awaited second terminal at Bandaranaike International Airport, a critical infrastructure upgrade that has been stalled for years due to financial constraints and the country’s sovereign default. Ports and Civil Aviation Minister Anura Karunathilaka confirmed in parliament that the technical assessment of contractor submissions has been completed, marking a significant milestone in a project viewed as essential to easing chronic congestion at the nation’s primary aviation hub.
According to the minister, authorities expect to open price bids by January, paving the way for the contract award by June or July 2026. If timelines hold, construction will commence shortly afterward, allowing the long-delayed development to finally break ground. For Sri Lanka, this project represents not only an infrastructure investment but also a renewed phase of cooperation with Japan, whose funding agency had previously suspended the loan after the sovereign debt default triggered compliance rules. Despite the airport’s ability to service the loan independently, the suspension stalled terminal construction after only the sub-structure had been completed.
Bandaranaike International Airport has been operating above capacity for years, a challenge that intensified as the second terminal remained in limbo. The growing number of passengers, combined with increased aircraft movements, has pushed operational limits and heightened pressure on existing facilities. Officials have repeatedly warned that without expansion, Sri Lanka risks falling behind regional competitors and compromising its position as a transit point in South Asia.
The delays have produced visible strain on airport operations, most notably in passenger processing and aircraft handling. Minister Karunathilaka told parliament that as a temporary measure, authorities had installed fourteen additional check-in counters in a marque structure, supported by private sector partners. This workaround has increased the airport’s ability to manage daily traffic, allowing for an additional ten to twenty aircraft movements each day. While the interim solution has offered some relief, it remains a stopgap until the long-term upgrade is completed.
Industry analysts note that the new terminal is expected to significantly enhance passenger flow, improve service standards, and elevate the airport’s capacity to accommodate modern aviation demands. The project will also play a vital role in supporting tourism recovery and expanding international connectivity once operational. With Japan’s involvement and the resumption of funding pathways, the development is also seen as a reaffirmation of long-standing bilateral ties that have historically supported Sri Lanka’s key infrastructure initiatives.
The anticipated 2026 construction start date marks a crucial turning point for aviation development in the country. For businesses dependent on international travel, airlines seeking superior handling capacity, and travelers frustrated by bottlenecks, the project’s revival brings renewed hope. The government has emphasized that detailed planning and structural assessments are being prioritized to prevent further delays and ensure that the long-term benefits justify the years of setbacks.
If the project progresses as scheduled, Sri Lanka could see the terminal fully operational within several years of the construction start. Such a development would align the country’s airport infrastructure more closely with regional standards and strengthen its role as a gateway to South Asia. As Sri Lanka navigates economic recovery and investor confidence gradually rebuilds, infrastructure undertakings of this scale serve as both a practical necessity and a signal of forward momentum.
For now, the focus remains on finalizing tenders and clearing the remaining administrative steps before construction begins. While uncertainties persist, particularly regarding broader economic conditions, the renewed clarity around timelines has offered a measure of stability to stakeholders. With the project officially back on track, the Sri Lanka airport terminal expansion stands poised to reshape the nation’s aviation landscape.