The Nikkei Asia website has indicated that Japan’s Taisei Company has also decided to cancel its contracts, just as Mitsubishi has decided to close its Sri Lankan office.
The Nikkei Asia website has reported that the Japanese Taisei Engineering Company was awarded a 62 billion yen contract in 2020 for the construction of a four-story passenger terminal building and other construction works for the second phase of the Bandaranaike International Airport expansion.
As Sri Lanka’s economic crisis worsened, the project was crippled due to the fact that the Japan International Cooperation Agency stopped providing loans to the Bandaranaike International Airport operator, the Airport and Airline Company, the Nikkei Asia website said.
As a result, the Nikkei Asia website stated that Taisei Engineering Company is negotiating with the airport operator to withdraw from the project and that company has decided to liquidate the project. They have named this project as a loss-making project.
When asked about this, Taisei said that it cannot comment on individual projects.
The Japan International Cooperation Agency has not decided not to provide financial support for the construction of the Bandaranaike International Airport, but due to Taisei’s decision to liquidate the project, the Japan International Cooperation Agency will have to find another company to hand over the project, the Nikkei Asia website reported.
The Sri Lankan media had reported that a Chinese company was interested in this project, but the Japan International Cooperation Agency has given the loan on the condition that Japanese companies must participate in the construction work, the Nikkei Asia website has pointed out.
Also, the Nikkei Asia website stated that the office of the Mitsubishi company in Sri Lanka, which will be closed at the end of March, managed the information in Sri Lanka and maintained the relationship between the parent company in Japan and Sri Lanka and was in charge of the construction, engineering and procurement of power plants in Sri Lanka.
Also, the Nikkei Asia website has indicated that Mitsubishi’s office in Sri Lanka also worked in the steel and chemical products trading sector in Sri Lanka.