JICA to resume funding for Sri Lanka’s Bandaranaike International Airport terminal 2
The Morning: The Japan International Cooperation Agency (JICA) has agreed to resume funding for the second terminal of the Bandaranaike International Airport (BIA) extension project, facilitated under a concessionary loan scheme, says Minister of Ports, Shipping and Aviation Nimal Siripala de Silva.
The construction of the second terminal at the BIA began in 2020 with JICA funding, but has been stalled since 2022 as a result of Sri Lanka’s default due to the economic crisis.
Funded by the Japan International Cooperation Agency (JICA), the project was suspended in 2022 until Sri Lanka’s debt restructuring was finalised.
The construction of the second terminal of the airport started in 2020 at a cost of Rs. 145 billion under the JICA soft loan scheme.
After Sri Lanka declared bankruptcy due to the economic crisis, the concessional loan programme given by JICA for the second terminal project had also been halted.
OSL take:
Sri Lanka’s ongoing economic expansion and the growing business potential has expanded the business/investment opportunities in the country. The steady growth in the country’s tourism industry and the airport and aviation sectors have opened up many opportunities in the development programmes of these sectors. The strengthening of internal and external connectivity is an essential component for an emerging business destination. The increasing demand and the growth potential in these sectors are evident by the funds being pledged for development programmes by international multilateral financial institutions. The availability of funds for certain identified development programmes provides ideal business opportunities for foreign businesses exploring opportunities in the South Asian region. The ongoing expansion of the country’s tourism as well as airport and aviation sectors have created a large number of business/investment opportunities especially in the development of infrastructure and supplementary infrastructure facilities required to meet the growing demand. With Sri Lanka on the path to becoming a hub in the South Asian region supported by the country’s strategic positioning in the Indian Ocean and the strong trade ties enjoyed with other countries, the business/investment opportunities in the tourism, airport and aviation sectors would see further growth. Foreign businesses/investors could therefore confidently explore the expanding business/investment opportunities in the tourism, airport and aviation sectors.