US' International Development Finance Corporation To Fund Adani's Sri Lanka Port For $553 Million

Adani Ports and Special Economic Zone Limited (APSEZ) said that the US fund will support the development of a deepwater shipping container terminal in the Port of Colombo

This is the first time that the US government, through one of its agencies, is funding an Adani project.

Source : APSEZ

US International Development Finance Corporation (DFC) will fund $553 million in Colombo West International Terminal Pvt. Ltd. (CWIT) – a consortium of India's largest port operator Adani Ports and SEZ Ltd., Sri Lanka's leading enterprise John Keells Holdings (JKH) and the Sri Lanka Ports Authority, according to a release by Adani Group. DFC is the US government's development finance institution. According to news agency Bloomberg, this move by both New Delhi and Washington aimed at curtailing China’s influence in South Asia. 

In a statement, Adani Ports and Special Economic Zone Limited (APSEZ) said that the US fund will support the development of a deepwater shipping container terminal in the Port of Colombo. "(It) will facilitate private sector-led growth and attract crucial foreign exchange to Sri Lanka to aid in its economic recovery," it said.

According to the statement, the US, Sri Lanka, and India will foster an enduring legacy of cooperation in the development of sustainable infrastructure, like smart and green ports. DFC partners with the private sector to finance solutions to the most critical challenges facing the developing world. It invests across sectors, including energy, healthcare, infrastructure, agriculture and small business and financial services. As per the statement, this is the first time that the US government, through one of its agencies, is funding an Adani project.

APSEZ whole-time director and CEO Karan Adani said, "We welcome the association of the US International Development Finance Corporation (DFC), the US government's development finance institution, in funding the Adani project. When completed, Colombo West International Terminal project will transform the socio-economic landscape, not just in Colombo but across the island, through thousands of direct and indirect new employment opportunities and by massively boosting Sri Lanka's trade and commerce ecosystem.”

DFC in a statement said, “The financing from International Development Finance Corp. for the deepwater West Container Terminal in Colombo is the US government agency’s largest infrastructure investment in Asia, and among its biggest globally. It will bolster Sri Lanka’s economic growth and “its regional economic integration, including with India, a key partner to both countries.”

DFC CEO Scott Nathan said, “DFC works to drive private sector investments that advance development and economic growth while strengthening the strategic positions of our partners. That’s what we’re delivering with this infrastructure investment in the Port of Colombo."

US Ambassador to Sri Lanka Julie Chung said, “The $553 million investment by DFC for the long-term development of the Port of Colombo’s West Container Terminal will facilitate private sector-led growth in Sri Lanka and attract crucial foreign exchange inflows during its economic recovery. Sri Lanka regaining its economic footing will further our shared vision for a free and prosperous Indo-Pacific.”

The Port of Colombo is the largest and busiest trans-shipment port in the Indian Ocean. It has been operating at more than 90 per cent utilisation since 2021, signalling its need for additional capacity. The new terminal will cater to growing economies in the Bay of Bengal, taking advantage of Sri Lanka’s prime position on major shipping routes and its proximity to these expanding markets.