CoPE uncovers massive losses in BIA expansion

Friday, 11 April 2025 04:00 - - {{hitsCtrl.values.hits}}

MP Dr. Nishantha Samaraweera

Exposes misuse of billions in public funds due to poor planning and overpayments
Conducts field investigation at BIA

The Committee on Public Enterprises (COPE), chaired by MP Dr. Nishantha Samaraweera, has unearthed significant financial mismanagement in the Bandaranaike International Airport (BIA) Development Project, revealing a misuse of billions in public funds and flawed execution of critical infrastructure developments. Following a field investigation at BIA on Wednesday, prompted by its recent review earlier this month of the Auditor General’s Reports for 2022 and 2023, CoPE exposed a trail of costly errors and avoidable expenditures by the Airport and Aviation Services (Sri Lanka) Ltd. (AASL).

Members of Parliament M.K.M. Aslam, Samanmali Gunasinghe, Lt. Commander (Retd.) Prageeth Madhuranga, Ruwan Mapalagama, Sunil Rajapaksa, Thilina Samarakoon, and Chandima Hettiarachchi participated in the inspection visit, alongside Parliamentary and institutional officials.

According to CoPE, Rs. 344.5 million spent on initial planning in 2007 proved to be wasteful after plans were revised in 2013, shifting the expansion target from 12 million to 15 million passengers annually. The original planning and consultancy services were outsourced to a Japanese joint venture, but before construction even began, the design was overhauled — leading to additional costs.

By 2024, planning and consultancy fees had ballooned to a staggering Rs. 3.88 billion. Payments included $ 178,589, Japanese Yen 1,612.4 million, and Rs. 808.6 million, all incurred due to plan changes and contract amendments. The original 47-month consultancy period was also controversially extended to 131 months, raising red flags about project oversight and accountability.

One of the most concerning findings involved the Remote Apron and Taxiways, awarded to Japan’s Hazama Corporation for Rs. 6.1 billion. Despite an overpayment of Rs. 766.8 million, AASL admitted the infrastructure could not be effectively used due to operational shortcomings — a revelation that drew sharp criticism from the Committee.

CoPE questioned how such a project was accepted as complete without adequate technical or operational analysis. It was revealed that officials only realised the project’s impracticality after completion, prompting the Committee to demand a full report on the resulting Government losses.

“It is deeply troubling that despite known weaknesses at the planning stage, the project continued without necessary corrections. These lapses indicate not just financial mismanagement, but a systemic failure in planning and oversight,” Chairman Dr. Samaraweera said.

The Committee also faulted both AASL and the Japanese consultants for advancing the project without robust feasibility or operational assessments. While AASL has since proposed remedial measures to align the outcomes with the original objectives, CoPE emphasised that future infrastructure planning must prioritise accountability and early-stage scrutiny to prevent similar blunders.

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