Colombo– Japan has loaned $400 million to Sri Lanka to build a new terminal at the island’s main international airport which suffers congestion from growing tourism, it was announced.

The Japan International Cooperation Agency (JICA) said the second terminal would more than double capacity to 15 million passengers annually.

The terminal, to be opened in 2020, would use solar energy and recycled water from a sewage plant for the flushing of toilets, JICA said in a statement.


”The project would be developed based on the concept of (an) eco-airport with Japanese advanced technology and know-how,” JICA said.

The loan, with 0.1 percent annual interest, is repayable over 40 years, JICA said, adding that the agreement with Sri Lanka’s government was concluded last week.

Built to accommodate six million passenger movements a year, Bandaranaike International Airport currently has 8.5 million travellers arriving and departing, causing congestion at check-in and baggage claim at peak times.

Foreign tourist numbers have increased rapidly since the island’s separatist war ended in May, 2009, attracting 1.7 million visitors last year.