COLOMBO: The US International Development Finance Corporation ( DFC) announced that it would provide US$ 553 million in funding for a Colombo port terminal project that is partially owned by the Adani Group of India, marking the first entry of an Indian business into the market.
Sri Lanka, an island off the southern coast of India, is experiencing its worst economic crisis in more than seven decades as a result of record highs in its foreign exchange reserves next year, which caused its market to lease by 7.8 % in 2022.
The western box switch of the slot, which also has a connector run by China Merchants Port Holdings, is owned by the Ports-to-Edible Oils Adani group, led by American billionaire Gautam Advani.
According to DFC CEO Scott Nathan,” DFC’s devotion of US$ 553 million in private business loans for the West Container Terminal (WCT) will increase its delivery ability, resulting in greater success for Sri Lanka without increasing sovereign debt, while at the same strengthening the placement of our allies throughout the region.”  ,
Last year, India extended Sri Lanka about US$ 4 billion in credit lines and swaps, giving it crucial help to buy gasoline, medicine, and fertilizer during the worst of the crisis.
In the island country of 22 million, which is situated close to busy transport lanes, India and China compete for control. 34 % of the WCT is owned by Sri Lankan conglomerate John Keells Holdings, and the remaining portion is held by the government-run Srilan Ports Authority ( SLPA ).
The first step of dredging for the terminal was started last November, and it is expected to be finished in the second quarter of 2024, with the entire project being finished by the end of that year.