Sri Lanka awards long awaited Bandaranayke Airport duty free tender


The Ministry of Transport and aviation has successfully concluded the Core Category Duty Free tender for the Prestigious Bandaranayke International Airport which has been awarded to Flemingo Duty Free at 40 % revenue share .

The core Category Duty Free contract was tendered for the first time since inception. The tender was for two [2] spaces, one being occupied by the World Duty Free Group [WDF] and The Second by Flemingo Duty Free.

The tender was keenly contested by renowned international bidders including incumbents World Duty Free Group a Dufry Company at 36%, B & S from the Netherlands at 35%, Shilla from Korea at 34% and Aer Rianta at 28%.

The Government of Sri Lanka has achieved considerable success as their revenue share has increased from 22000000+ to almost 40,000,000 USD, an 80% increase in revenue compared to the increase in traffic of just 14%.

Reportedly as the No 2 and No 3 bidders did not qualify due to technical issues, in order to ensure that the Airport maximizes revenue the Cabinet has taken a decision to retender the second space.

The World Duty Free Group, has been operating the core category duty free shops at the Bandaranayke International Airport for the last 20 years. The WDF group employs around 300 employees who stand a very good chance of getting back into the airport as soon as possible. The Ministry of Transport and Aviation has already published the tender for the second space and the date of submission is the 19th of April, hence the WDF Group have a great opportunity to come back to the airport in the second tender.

The Ministry has moved very quickly in a bid to ensure that the Government of Sri Lanka earns top Dollars, and the employees of WDF have a very good chance of getting back into the airport.

The BIA Airport handled 9.47 million international passengers in 2016, with passenger traffic growing by 14% for the year 2016. The new airport terminal is due to be operational by 2020.

(Media Release)