Adani to Self-Finance Sri Lankan Port Project, Withdraws Request for US DFC Funding

The Adani Ports and Special Economic Zones (APSEZ) Ltd on Tuesday said it will be funding the Sri Lankan port project using its internal resources and would not look for US funding. Adani Ports in a filing said the project "is on track for commissioning by early next year".

“We would like to inform that Colombo West International Terminal (CWIT) project in Sri Lanka is progressing well and is on track for commissioning by early next year,” said the flagship Adani Group company.

“The project will be financed through the company’s internal accruals and capital management plan. We have withdrawn our request for financing from the US Development Finance Corporation (DFC),” it added.

In November last year, the US International Development Finance Corp agreed to provide a $553 million loan to support the development, construction, and operation of CWIT at the Port of Colombo in Sri Lanka.

The CWIT is being developed by a consortium of Adani Ports, Sri Lankan conglomerate John Keells Holdings Plc, and the Sri Lanka Ports Authority (SLPA).

The CWIT project kick-started in September 2021, after Adani Ports signed a deal with the Sri Lanka Ports Authority and Sri Lankan conglomerate John Keells Holdings pledging over $700 million to grow the capabilities of Colombo Port.

CWIT will remain Sri Lanka's largest container terminal and also the country's deepest one, being 1,400-metre quay length and 20-metres alongside depth.

The Port of Colombo is the Indian Ocean's largest and busiest trans-shipment port, which has operated at over 90 percent utilization since 2021, thus necessitating new capacity.

The new terminal will be an important source of support to growing economies in the Bay of Bengal through taking advantage of Sri Lanka's prime position on the major shipping routes and proximity to the growing markets.

The annual cargo-handling capacity for this new terminal would likely surpass 3.2 million.