The government has launched a Rs. 15 billion project to fully renovate Terminal 1 at the Bandaranaike International Airport in Katunayake, as a long‑term measure to ease passenger congestion.

According to the government, the initiative is being funded entirely through domestic state allocations, without reliance on foreign loans. 

Deputy Minister of Civil Aviation Janitha Ruwan Kodithuwakku said the move was necessary to address the surge in tourism demand, noting that construction of the second terminal under Japanese assistance may take several more years to complete.

To provide immediate relief, a temporary marquee has already been set up with private sector support, adding 14 check‑in counters and enabling the airport to handle an additional 10 to 20 flights daily.

The renovation plan includes expansion of the departure hall, reduction of security and immigration queues, redesign of the arrivals section, and modernization of baggage handling systems.

Upon completion, Terminal 1’s annual passenger capacity is expected to rise from 6 million (currently stretched to 10 million) to 15 million, strengthening Sri Lanka’s position as a regional aviation hub.