Airport Gridlock | Bandaranaike International Airport (BIA) in Katunayake remains Sri Lanka’s most important international gateway, handling more than 98 per cent of the country’s air passenger traffic. For decades it has symbolised the nation’s first impression to visitors and investors alike. Yet today, as tourist arrivals rebound and air travel continues to recover, BIA is showing its age. Congested terminals, long queues, and limited gate capacity have made it increasingly clear: the airport’s long-delayed expansion is no longer optional but critical.
A Gateway Under Pressure
Passenger arrivals have steadily climbed back towards pre-pandemic levels. In July 2025, Sri Lanka crossed the 200,000 monthly arrivals mark, a sign that the tourism sector is gaining momentum once again. Airlines are adding frequencies, and several new carriers have begun eyeing Colombo as a stop on regional routes.
But BIA’s facilities, designed for a maximum capacity of around 6 million passengers annually, are buckling under the strain. In practice, the airport already processes close to 10 million passengers a year, well above its intended design. The result is a daily reality of bottlenecks: long queues at immigration counters, congested baggage reclaim areas, and insufficient boarding gates to handle simultaneous wide-body aircraft.
For travellers, this creates frustration. For airlines, it increases turnaround time and cost. And for the broader economy, it risks undermining Sri Lanka’s pitch as a welcoming, efficient destination for tourism and trade.
Terminal 2: The Expansion That Never Came
Plans to build a second passenger terminal at BIA have been on the table for over two decades. The project, known as Terminal 2, was first floated in the early 2000s and formalised through Japanese development funding. A loan package from the Japan International Cooperation Agency (JICA) was secured, designs were approved, and preliminary work even began.
However, a combination of political transitions, funding constraints, and later the 2020 economic crisis pushed the project into indefinite delay. What was supposed to be operational by the early 2020s is now unlikely to open before 2027 or 2028. Cost estimates, once placed at USD 700 million, have escalated sharply due to currency depreciation and global construction inflation.
Terminal 2, when complete, is expected to more than double passenger handling capacity, provide modern check-in facilities, introduce advanced baggage handling systems, and add at least a dozen new boarding gates. But for now, it remains an unfinished promise.
Stopgap Measures Are Not Enough
Authorities have attempted interim measures to ease congestion. Terminal 1 has seen limited upgrades, including extra immigration counters, improved seating, and digital kiosks for check-in. Temporary lounges have been added, and baggage carousels extended.
While these efforts offer short-term relief, they do not address the structural constraints. The single runway continues to limit slot availability during peak hours. The narrow gate configuration means aircraft often wait for extended periods on the apron. Cargo handling, vital for high-value exports such as apparel, seafood, and electronics, also suffers delays due to limited warehouse and processing space.
Sri Lanka’s ambitious tourism target, five million arrivals by 2030 will be impossible to achieve without a fully expanded and modernised airport.
Regional Competitors Are Surging Ahead
BIA’s challenges are even starker when compared with the region. Maldives’ Velana International Airport recently opened a new international terminal, capable of handling 7.5 million passengers annually, despite the country’s far smaller population and economy.
Bangkok’s Suvarnabhumi Airport is undergoing a multi-phase expansion targeting 60 million passengers a year. Singapore’s Changi continues to expand with its futuristic Terminal 5 project. Even airports in Vietnam and the Philippines have moved rapidly to attract carriers and establish themselves as competitive hubs.
In contrast, Colombo risks being relegated to a secondary stop. Without modern facilities, airlines are more likely to route passengers through competing hubs, cutting into Sri Lanka’s ability to become a transit and tourism leader.
Financing the Future
Funding remains the central obstacle. With public debt restructuring still under negotiation, Sri Lanka has limited fiscal room to take on new mega-projects. This is where public-private partnerships (PPPs) could play a role.
Several Asian airports, such as Delhi, Hyderabad, and Male; have successfully involved private investors and operators in expansion projects. A carefully structured PPP for Terminal 2 and associated upgrades could unlock the capital and expertise required, while ensuring the state retains regulatory oversight.
For investors, the case is strong: tourism is rebounding, Colombo remains strategically positioned on East-West air routes, and Sri Lanka’s export industries depend on reliable cargo links. The key is political will and transparent contract structuring.
Beyond Terminals: The Bigger Picture
Expansion is not only about new gates and terminals. The passenger experience must be improved through streamlined security processes, efficient ground transport connections, and enhanced retail offerings. Sri Lanka should also consider developing a regional airport network, distributing some traffic to Mattala Rajapaksa International Airport (MRIA) in Hambantota or Jaffna International Airport, though neither currently offers viable alternatives due to connectivity and demand.
Cargo infrastructure deserves equal attention. With global supply chains shifting, Sri Lanka has the chance to position itself as a niche air cargo hub for South Asia. That requires investment in cold storage, automated logistics, and bonded warehousing at BIA.
The Cost of Inaction
The cost of delay is measured not just in frustrated passengers but in lost economic opportunities. Every additional hour a traveller spends in congested queues erodes Sri Lanka’s competitiveness. Every missed airline partnership reduces potential tourist inflows. Every delayed cargo shipment risks a lost buyer.
At a time when Sri Lanka needs foreign exchange more than ever, under-investment in the very infrastructure that brings in tourists and facilitates exports is a strategic mistake. If Terminal 2 continues to be delayed, the country risks being left behind in the region’s aviation race.
Conclusion on Airport Gridlock
Bandaranaike International Airport stands at a crossroads. For decades it has served as Sri Lanka’s airbridge to the world, but today it is straining under the weight of rising demand and outdated facilities. The long-promised expansion cannot be delayed any longer.
Whether through renewed JICA funding, public-private partnerships, or alternative financing, Sri Lanka must commit to delivering a modern, efficient airport within the next three years. The future of tourism, trade, and investment depends on it.
In aviation, capacity is destiny. For Sri Lanka to realise its economic ambitions, BIA’s expansion is not a luxury, it is a necessity.
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