New Delhi:The US announced a $553 million project Wednesday to build a deep-water shipping container terminal in Sri Lanka's Port of Colombo as it competes with China in international development financing. The project is being developed by Adani Ports as a joint venture.
According to the statement issued by the US embassy in Colombo, the new terminal reflects US International Development Finance Corporation's (DFC) commitment to financing high-quality infrastructure that supports its partner’s development needs, invests in local communities, and is respectful of local financial conditions. The investment further demonstrates the United States’ enduring commitment to Sri Lanka’s economic growth and its regional economic integration, including with India.
The US mission in Colombo said that DFC Chief Executive Officer (CEO) Scott Nathan traveled to Sri Lanka to launch $553 million in financing to Colombo West International Terminal Private Limited to support the development of the deepwater West Container Terminal located within the Port of Colombo. Foreign Minister Ali Sabry, Chief of Staff to the President and National Security Advisor (NSA) Sagala Ratnayaka and U.S. Ambassador to Sri Lanka Julie Chung joined CEO Nathan for the ceremonial launch of the new terminal..”
The DFC will make a direct loan to the consortium developing the terminal, which is 51% owned by Adani Ports & Special Economic Zones Ltd. The other partners are Sri Lanka's John Keells Holdings, which has a 34% share, and the Sri Lanka Ports Authority with the remaining 15%.
U.S. 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. This financing is symbolic of the United States’ long-standing commitment to the development and well-being of the people of Sri Lanka. Sri Lanka regaining its economic footing will further our shared vision for a free and prosperous Indo-Pacific.”
According to the US embassy statement, this investment models how DFC operates, supporting projects that are strategic, economically sound, and led by the private sector. "DFC is working with world-class sponsors John Keells Holdings and Adani Ports & Special Economic Zones Limited (APSEZ). These companies’ local experience and high-quality standards will help support local jobs and make this project a long-term, sustained success for the Indo-Pacific, read the statement issued by the US embassy in Colombo," the statement added.
It is pertinent to note that the Port of Colombo is the largest and busiest transshipment port in the Indian Ocean. It has been operating at more than 90 percent 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.
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