USIDFC Joins Adani In Developing Sri Lanka Port
COLOMBO (IANS) – The US had joined the Adani Group with a half a billion dollar loan to build a new deep water shipping container terminal at the in strategic Colombo Port in the race against China’s acquisition of part of ports in the Sri Lankan capital and the US
The US International Development Finance Corporation on November 7 announced it’s $553 million finance on the Colombo West International Terminal Private Limited (CWITP), Sri Lanka biggest Foreign direct investment of $750 million to develop the port.
The US has joined in the joint venture between Sri Lanka and India with Adani Ports & Special Economic Zones Limited which owns 51 shares of the project.
“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,” DFC CEO Scott Nathan said while announcing the partnership in Colombo.
“Sri Lanka is one of the world’s key transit hubs, with half of all container ships transiting through its waters. DFC’s commitment of $553 million in private-sector loans for the West Container Terminal will expand its shipping capacity, creating greater prosperity for Sri Lanka — without adding to sovereign debt — while at the same time strengthening the position of our allies across the region,” Nathan added.
The state-run Sri Lanka Ports Authority (SLPA) will have 15 per cent of the total shares.
The Port of Colombo is the largest and busiest trans-shipment port in the Indian Ocean and it has been operating at more than 90 per cent utilization since 2021, signaling 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, the US Embassy said in a statement.