The Cabinet of Ministers has approved awarding the contract to expand the departure terminal at the Bandaranaike International Airport (BIA) in Katunayake to Maga Engineering (Pvt) Ltd, Cabinet Spokesman Minister Nalinda Jayatissa said.
The project covers the construction of a new building with 36 check-in counters and six boarding gates connecting the departure terminal to aircraft, part of a wider effort to expand the capacity of the airport’s passenger departure facilities.
Jayatissa said the contract was valued at US$7.26 million and Rs. 3.77 billion, both excluding VAT, with the funding to come from the general treasury. Cabinet had originally cleared the procurement process for the new building on February 9, 2025.
An international competitive bidding process was subsequently held to select a contractor, and three bids were received. Following an evaluation, the Standing High-Level Procurement Committee recommended awarding the contract to Maga Engineering as the lowest substantially responsive bidder, and the Cabinet approved the proposal submitted by the Minister of Ports and Civil Aviation on that basis.
The expansion is aimed at easing congestion and improving passenger handling at the country’s main international gateway, which continues to see rising traffic as tourist arrivals climb past 1.2 million for the year.
