US fund to pump $553m into Sri Lanka port construction project

The Port of Colombo, Sri Lanka (Image: saiko3p via AdobeStock - stock.adobe.com)

A US fund is to extend $553 million to a consortium of companies to build a new deepwater shipping container terminal in the Port of Colombo, Sri Lanka.

The US International Development Finance Corporation (DFC) will offer the financing to Colombo West International Terminal (CWIT) - a consortium of India’s largest port operator Adani Ports and Special Economic Zone (SEZ) Ltd., John Keells Holdings (JKH) and the Sri Lanka Ports Authority.

The Port of Colombo is the largest and busiest transshipment port in the Indian Ocean.

It has been operating at more than 90% utilization 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.

DFC CEO Scott Nathan said, “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.”

Karan Adani, whole time director and CEO, Adani Ports and Special Economic Zone added, “As one of the world’s largest port developers and operators, APSEZ brings to this project not only our proven world-class expertise but also our deep experience in infrastructure creation. When completed, Colombo West International Terminal project will transform the socio-economic landscape, not just in Colombo but across the island.”