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BUSINESS EYE NOVEMBER 17, 2023 | The Indian Eye 26

A game-changer in Sri Lanka as USIDFC

invests $553 million in Adani port project

It is the first time that the US government is funding an Adani project, which is

expanding its global footprint through strategic investments in emerging markets

OUR BUREAU
Washington, DC/Colombo
dani Ports said on Wednesday that the US
International Development Finance Corpo-
Aration (DFC) has announced that it will be
funding Colombo West International Terminal Pvt.
Ltd - a consortium of India’s largest port operator
Adani, Sri Lanka’s leading enterprise John Keells
Holdings (JKH) and the Sri Lanka Ports Authority
- to the tune of USD 553 million.
DFC, the US government’s development fi-
nance institution, partners with the private sector
to finance solutions to the most critical challeng-
es facing the developing world. It typically invests
across sectors, including energy, healthcare, in-
frastructure, agriculture, and small business and
financial services.
The Adani Group in a release that this is the
first time that the US government, through one of
its agencies, is funding an Adani project, noting
that it showed their confidence in the conglomer-
ate’s ability to invest and create a world-class con-
tainer facility in Colombo Port. The Adani Group The Colombo Port is the largest and busiest transhipment port in the Indian Ocean (above);
is expanding its global footprint through strategic
investments in emerging markets. of our partners. That’s what we’re delivering with
“We welcome the association of the US In- this infrastructure investment in the Port of Co-
ternational Development Finance Corporation lombo,” said DFC CEO Scott Nathan.
(DFC), the U.S. government’s development fi- “Sri Lanka is one of the world’s key transit hubs,
nance institution, in funding the Adani project with half of all container ships transiting through
- and we see this as a reaffirmation by the inter- its waters. DFC’s commitment of $553 million in
national community of our vision, our capabilities private-sector loans for the West Container Ter-
and our governance,” said Karan Adani, Whole minal will expand its shipping capacity, creating
Time Director and CEO, Adani Ports and Special greater prosperity for Sri Lanka - without adding
Economic Zone. to sovereign debt - while at the same time strength-
“As one of the world’s largest port developers ening the position of our allies across the region.”
and operators, APSEZ (Adani Ports) brings to The Port of Colombo is the largest and bus-
this project not only our proven world-class exper- iest transshipment port in the Indian Ocean. It
tise but also our deep experience in infrastructure has been operating at over 90% utilization since
creation. When completed, the Colombo West 2021, indicating requirement for additional capac-
International Terminal project will transform the ity. The new terminal will cater to growing econo-
socio-economic landscape, not just in Colombo Gautam Adani, the chief of the Adani Group (File photos) mies in the Bay of Bengal, taking advantage of Sri
but across the island, through thousands of direct Lanka’s prime position on major shipping routes
and indirect new employment opportunities and When commissioned, CWIT will be the larg- and its proximity to these expanding markets, the
by massively boosting Sri Lanka’s trade and com- est and deepest container terminal in Sri Lanka. group said.
merce ecosystem.” With a quay length of 1,400 meters and an along- US Ambassador to Sri Lanka Julie Chung
The Colombo Port is the largest and busiest side depth of 20 meters, CWIT will be equipped said: “The $553 million investment by DFC for
transhipment port in the Indian Ocean. It has been to handle ultra-large container vessels with capaci- the long-term development of the Port of Colom-
operating at more than 90 per cent utilization since ties of 24,000 TEUs (twenty-foot equivalent units). bo’s West Container Terminal will facilitate private
2021, signalling its need for additional capacity. The new terminal’s annual cargo handling capacity sector-led growth in Sri Lanka and attract crucial
The new terminal will cater to growing econo- is likely to exceed 3.2 million TEUs. foreign exchange inflows during its economic re-
mies in the Bay of Bengal, taking advantage of Sri “DFC works to drive private sector invest- covery. Sri Lanka regaining its economic footing
Lanka’s prime position on major shipping routes ments that advance development and economic will further our shared vision for a free and pros-
and its proximity to these expanding markets. growth while strengthening the strategic positions perous Indo-Pacific.”

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