Sri Lanka’s port expansion project, spearheaded by India’s Adani Group, is advancing according to plan, an official stated on Tuesday.
“Construction at the Colombo West International Terminal is ongoing, with phase one scheduled for completion in early 2025,” said Sirimevan Ranasinghe, chairman of the Sri Lanka Ports Authority (SLPA), in an interview with Bloomberg.
Ranasinghe, a minority shareholder in the project, emphasized that the development is proceeding in line with the agreement signed with Adani Ports and Special Economic Zone.
Adani Group’s involvement in the $1 billion Colombo terminal project represents the largest foreign direct investment in Sri Lanka’s port sector, highlighting its significant role in modernizing the nation’s port infrastructure.
Ranasinghe noted that while U.S. financing for the project has yet to be finalized, securing the necessary funds is the responsibility of the joint-venture company overseeing the development.
The U.S. International Development Finance Agency pledged a $553 million loan last year to support the project, which is majority-owned by Adani Ports. This funding is widely regarded as a strategic move to counter China’s growing influence in the region through its extensive infrastructure investments.
The loan, set to span a 20-year tenure, includes an equity contribution of 30% from the project partners. Adani Group anticipates a return on investment of approximately 16%.
—With inputs from Bloomberg.
