Jan 03, Colombo: Sri Lanka has signed a Rs. 42.5 billion loan agreement with Japan to expand the country's only international airport at Katunayake.
Airport and Aviation Services (Sri Lanka) Ltd. and Japan International Co-operation Agency (JICA) have signed the loan agreement for Japanese Yen 29 billion to finance the expansion of the Bandaranaike International Airport and future developments.
The cabinet has granted its approval for the project, which is expected to be completed by the end of 20 15, to proceed.
Under the Development Project Phase II Stage 2 work will be carried out to expand the terminal building, Aircraft Parking Apron, and Public Utilities.
The Cabinet has also granted approval for Minister of Civil Aviation Priyankara Jayaratne, to seek additional financial assistance from abroad for the Hambantota International Airport Development Project at Mattala.
Construction of Hambantota Airport Development Project is nearing completion. Both Cargo and Passenger Terminals have been expanded and facilities have been added to the Terminal and Airport Infrastructure, the government said.
The national carrier SriLankan Airlines has proposed to establish a Maintenance, Repair and Overhauling (MRO) facility at the Mattala airport to cater to the Asian Region, including the Indian Market
The government says the proposed improvements will increase employment opportunities for the local population and also stimulate economic development in the southern region.