Adani Group’s Sri Lankan port terminal project to receive $553 million from US’ DFC

A Colombo port terminal project, partly owned by Gautam Adani-led Adani Group, is reportedly set to receive $553 million in financing from the US International Development Finance Corporation (DFC) that will advance the first foray by an Indian company into the sector.

Adani Group holds a 51 per cent stake in the West Container Terminal (WCT) of the port, which also has a terminal run by China Merchants Port Holdings. Sri Lankan conglomerate John Keells Holdings owns 34 per cent of the WCT and the rest is held by state-run Sri Lanka Ports Authority (SLPA).

DFC CEO Scott Nathan said, "DFC’s commitment of $553 million in private sector loans for the West Container Terminal (WCT) will expand its shipping capacity, creating greater prosperity for Sri Lanka – without adding to sovereign debt – while at the same strengthening the position of our allies across the region.”

This financing comes as Sri Lanka is reeling under its worst financial crisis in over 70 years. The Sri Lankan economy contracted 7.8 per cent in 2022 after its foreign reserves ran to record laws.

India had extended $4 billion in swaps and credit lines to Sri Lanka, assisting them with critical support for fuel, medicine, and fertiliser imports.

Gautam Adani met Sri Lankan President Ranil Wickremesinghe in July during his two-day visit to India and discussed the development of the WCT at Colombo Port. “Great Honour to have met H.E. President Ranil Wickremesinghe to discuss a fascinating set of projects in Sri Lanka including continued development of Colombo Port West Container Terminal, 500 MW wind project, and extending our renewal energy expertise to produce green Hydrogen,” he said on X.

Adani Ports and Special Economic Zones Ltd (APSEZ) that received a Letter of Intent in 2021 from the Sri Lankan authorities to develop and operate WCT has partnered with John Keells Holdings and SLPA as part of the consortium that was awarded the mandate. The WCT will be developed on a Build, Operate and Transfer basis for a period of 35 years as a public-private partnership.

The project is expected to boost WCT’s container handling capacity. The Colombo Port is already the most preferred regional hub for transhipment of Indian containers and mainline ship operators.

(With agency inputs)

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