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Palaly Airport expansion faces land hurdles

Palaly Airport expansion faces land hurdles

01 Nov 2026 | By Sulochana Ramiah Mohan


  • Terminal project targets July 2027


As of Friday (30 October), development at the Jaffna International Airport (Palaly Airport) is progressing, with the passenger terminal expansion expected to be completed by July 2027. However, the airport’s longer-term expansion continues to face challenges over land acquisition, funding, and the extent of the proposed development. 

The proposed expansion of the airport is facing delays due to land acquisition difficulties involving properties under the Ministry of Defence as well as privately owned land, according to Civil Aviation Authority of Sri Lanka (CAASL) Director General Captain Daminda Rambukwella. 

He said that the development work was progressing under the Government. According to a Government announcement in February, the terminal expansion project is being implemented in two stages, with Stage 1 having commenced and Stage 2 scheduled to begin in June. The two-stage development programme was estimated to cost approximately Rs. 700 million. 

Speaking to The Sunday Morning, Captain Rambukwella said that the land required for the next phase had been identified in the airport’s master plan, but acquisition had been complicated by protests and the need to determine compensation for affected landowners. 

“Some of the land identified for the airport’s development is under the Ministry of Defence, while other areas involve private land. There have also been protests relating to land acquisition,” he said. 

He further stated that officials had been assigned to work with the Ministry of Defence to examine the land requirements, while discussions had also been held with the relevant authorities. The acquisition process is ongoing, with the Government required to determine compensation arrangements. 

On the airport’s operational capacity, Rambukwella said that Palaly could currently accommodate ATR aircraft, but larger aircraft would require an extension of the runway. He stressed that runway development was the responsibility of Airport and Aviation Services (Sri Lanka) Ltd. (AASL), not the CAASL. 

Meanwhile, the CAASL is considering introducing Required Navigation Performance (RNP) approaches at the Palaly and Ratmalana Airports. The system uses satellite-based navigation and reduces reliance on conventional ground-based navigation infrastructure. 

Captain Rambukwella said that the proposed system was widely used internationally and could improve navigation capabilities at both airports. 

Responding to concerns raised in the Auditor General’s 2024 report over an advance payment of approximately Rs. 170 million released through the CAASL for the development of the Jaffna International Airport while AASL records reportedly reflected Rs. 175 million, Captain Rambukwella said that the CAASL fund had been used as an intermediary to release money for the project. 

Supporting bills and documentation had to be submitted to account for the expenditure, but there had been issues with the submission of bills. 

“I cannot describe that as corruption. However, I was informed that the matter has since been settled by AASL, with the guidance of the ministry,” he said.




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