Govt. steps up logistics push with ports, airports pipeline

• BIA expansion targets annual passenger capacity of 24.2 m; Phase II due for completion in 2027
• Colombo Logistics Park, WCT Phase II, southern breakwater extension and port digitalisation reviewed ahead of Budget 2027
• Mattala Airport continues to lose Rs. 6-7 m daily or around Rs. 4 b annually; investment process to conclude by 2027
• President urges State entities to fund expansion from own financial strength and maximise returns to the Treasury

The Government last week signalled a stronger focus on logistics infrastructure ahead of Budget 2027, with President Anura Kumara Dissanayake reviewing a pipeline of port and aviation projects aimed at expanding capacity, improving operational efficiency and strengthening Sri Lanka’s position as a regional logistics hub.

According to the President’s Office, chairing a pre-Budget review of Ports and Civil Aviation Ministry, the President assessed the progress of projects under the 2026 Budget and proposals for next year’s fiscal plan, covering the Sri Lanka Ports Authority, Airport and Aviation Services (Sri Lanka), SriLankan Airlines, the Civil Aviation Authority of Sri Lanka and other State institutions.

On the maritime front, discussions centred on the proposed Colombo Logistics Park, the southern breakwater extension, Phase II of the Western Container Terminal (WCT) and the digitalisation of port operations to improve efficiency. Officials also updated the President on projects under the Sri Lanka Ports Development Program, financed by the World Bank, the Asian Development Bank and the Government of India, including the rehabilitation of Kankesanthurai Port.

The aviation agenda was led by a long-term development plan for Bandaranaike International Airport (BIA), with officials outlining investments designed to meet Sri Lanka’s aviation requirements over the next 30 years. The plan aims to increase the airport’s annual passenger handling capacity to 24.2 million by 2055.

Under Phase II of the BIA Development Project, scheduled for completion in 2027, the existing arrival and departure terminals will be expanded, a new terminal building constructed and depot facilities enhanced. The President also directed officials to improve passenger transport services in and around the airport and accelerate the digitalisation of airport services in collaboration with the Ministry of Digital Affairs.

The three-year development program aims to increase the airport’s annual passenger handling capacity to 24.2 million by 2055, officials told the President during the review.

The meeting also highlighted the commercial challenges facing Mattala International Airport. Officials said the airport continues to incur losses of between Rs. 6 million and Rs. 7 million a day, amounting to approximately Rs. 4 billion annually, and presented alternative proposals to improve its viability. They added that the process of evaluating investment proposals for the airport is expected to be completed by 2027.

The President also reviewed development work at Hingurakgoda and Jaffna airports, directing the Ministry of Ports and Civil Aviation and the Sri Lanka Air Force to establish a more effective coordination mechanism for civil passenger operations and prepare a joint assessment of the operational requirements of each domestic airport.

“The institutions concerned should utilise their financial strength effectively and manage funding for future development projects in a manner that maximises their contribution to the State Treasury without placing an additional burden on taxpayers,” the President said.