The Sri Lankan Government has reconfirmed publicly that it will tender two five-year duty free contracts at Colombo’s Bandaranaike International Airport, following the cabinet’s earlier decision announced last January to create an open bids process that is ‘transparent’.

As reported, both World Duty Free and Flemingo International currently compete head on for this growing business at the airport’s departure and arrivals shops, with both retailers originally appointed the last time around, as opposed to participating in any open tender process.

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(Top): Flemingo Duty Free at Colombo Airport. (Above) World Duty Free at Colombo Airport.

Following this earlier announcement, several retailers have since been looking to forge joint venture alliances with local companies to bid for this business, although no formal timetable has yet been published.

Meanwhile, the Sri Lankan Government has also confirmed big changes ahead with the opening of a new $400m second airport terminal in 2020, thanks to a 40-year loan from the Japan International Cooperation Agency (JICA).

Two artist’s impressions of the new Terminal 2 facility which is expected to be complete by 2010 at Colombo Airport.

This has now been formally agreed and will result in passenger capacity growing to an estimated 15m a year, with the terminal building expected to offer considerably more commercial space than exists at present.

Last year, the country attracted 1.7m ‘foreign’ visitors, while Bandaranaike Airport has also been growing as a transfer facility for Indian workers travelling to both Asia and Europe. In total, it handled around 8.5m departures and arrivals in 2015, although its official capacity is only 6m.