BIA expansion project halted!

JICA has pulled out its funding for the Bandaranaike International Airport (BIA) Expansions temporarily as the Sri Lankan Government is not in a position to repay the loan. 

Accordingly, JICA has halted the funding of US$570 million for the Terminal-2 construction of the BIA Development Project (BIADP) Stage 2 forcing Japanese Taisei Corporation Sri Lanka Ltd to suspend the work. 

Taisei has also faced difficulties in finding necessary materials leading to high costs. As a trickle-down effect staff have been served with notice of termination. 

JICA's loan was to be provided under the Special Terms for Economic Partnership, with 0.1% p.a. interest and a 40-year repayment period to promote technology transfer, build quality infrastructure, and economic cooperation between Sri Lanka and Japan.