Sri Lanka, JICA Discuss Resumption of Stalled Airport Project

COLOMBO (News 1st); The construction of the second terminal at Katunayake Airport, stalled since 2022 due to the economic recession, is set to resume following fruitful discussions between the Minister of Ports, Shipping and Aviation, Nimal Siripala de Silva, and representatives from the Japan International Cooperation Agency (JICA).

The project, initially launched in 2020 with a JICA soft loan of 145 billion rupees, was halted in March 2022 as Sri Lanka declared it would default on its debt.

This caused contractors to abandon construction of essential components, leaving only 6% of the project completed.

Minister de Silva actively pursued the project's resumption, culminating in a meeting with JICA Chairman Akihiko Tanaka. 

During the discussion, Minister de Silva highlighted the rising costs of construction materials and equipment, necessitating an additional 450 million US dollars beyond the original loan amount.

Recognizing Sri Lanka's current economic recovery, JICA Chairman Tanaka expressed support for the project's continuation, subject to the completion of financial restructuring processes overseen by the International Monetary Fund. This marks a significant step forward for the second terminal, which is crucial for accommodating the growing tourist influx and boosting the aviation industry.

Following the meeting, Chairman Tanaka and Minister de Silva visited the construction site to assess the current progress.