The Japan International Cooperation Agency (JICA) has pledged its support for the construction of Katunayake Airport's second terminal, pending the completion of financial restructuring measures by the International Monetary Fund (IMF).
The decision emerged following a high-level discussion held at the Ministry of Ports, Shipping, and Aviation, where Minister Nimal Siripala de Silva engaged with a delegation that included JICA Institute Chairman Akihiko Tanaka.
The focal point of the deliberations centered on the revival of the Katunayake Airport's second terminal project, which commenced in 2020 under a JICA soft loan scheme amounting to Rs. 145 billion. Unfortunately, the initiative came to a halt in 2022 due to Sri Lanka's economic downturn.
The country's declaration of bankruptcy led to the suspension of JICA's concessional loan program for the terminal project, resulting in an abrupt cessation of construction activities by March 2022. Consequently, vital components of the terminal were left unfinished, with the airport company resorting to utilizing its financial resources to complete 6% of the project.
Minister Silva underscored the pressing need for an additional USD 450 million, citing escalating prices of raw materials, equipment, and construction-related commodities.
Following the discussions, JICA representatives, led by the company's chairman, inspected the ongoing construction efforts at Katunayake Airport's second terminal. The visit signals a renewed commitment to advancing infrastructure development in Sri Lanka, underscoring the collaborative efforts between Sri Lanka and Japan in fostering economic growth and connectivity.
