By Maria Kalamatas — August 27, 2025

COLOMBO — August 27, 2025. On the tarmac at Bandaranaike International Airport, ground staff moved in quick rhythm, forklifts weaving between pallets of textiles, electronics, and seafood bound for Europe and the Middle East. Amid the bustle came the news: SriLankan Airlines will build a new cargo terminal that will double its freight capacity by the end of 2025.

The airline currently handles around 250,000 tonnes of cargo a year. With the new facility, that figure is set to climb to half a million tonnes, positioning Colombo as a serious contender among South Asia’s transshipment hubs.

“We’ve seen demand outpace infrastructure for years,” admitted Shehan Fernando, head of cargo operations at SriLankan Airlines. “This expansion isn’t just about growth — it’s about catching up and making sure we stay relevant in the regional race.”

Betting on South Asia’s growth

Sri Lanka sits in a strategic corridor between East Asia, the Middle East, and Africa. Airlines have long touted Colombo as a natural stopover, but limited infrastructure has kept volumes modest compared to hubs like Dubai or Singapore.

With e-commerce shipments from China surging and pharmaceutical exports from India looking for faster gateways, the new facility could finally tip the scales.

Features of the new terminal

Executives say the terminal will be equipped with automated handling systems, temperature-controlled zones for perishables, and high-security storage for pharmaceuticals and electronics. The design is also meant to improve turnaround, cutting ground times by up to 30 percent.

A boost for local exporters

For Sri Lankan exporters — from tea producers to apparel manufacturers — the announcement is being welcomed as a lifeline. “Air cargo costs are high, but speed keeps us in the game,” said Anura Jayasinghe, a garment exporter in Katunayake. “If Colombo can handle more volume directly, we won’t lose as much time routing through Dubai.”

Outlook

The new terminal is slated to break ground in early 2026, with partial operations beginning sooner if construction stays on schedule. If the project delivers, SriLankan Airlines could transform Colombo from a regional stopover into a central player in the global cargo map.

For now, the forklifts at Bandaranaike keep moving — but with the promise that soon, they will be handling twice as much freight as they do today.

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