US commits $553 mln financing for Adani terminal venture at Colombo port

China Merchants Port Holdings

08/11/2023 03:22

COLOMBO, Nov 8 (Reuters) - The U.S. International
Development Finance Corporation (DFC) said it will provide $553
million financing for a Colombo port terminal project, partly
owned by India's Adani Group, advancing the first foray by an
Indian company into the sector.  
    Sri Lanka, an island off India's southern coast, is mired in
its worst financial crisis in over seven decades after its
foreign exchange reserves ran to record lows last year forcing
its economy to contract by 7.8% in 2022. 
    Ports-to-edible oils Adani group, controlled by Indian
billionaire Gautam Adani, holds a 51% stake in the west
container terminal of the port, which also has a terminal run by
China Merchants Port Holdings Co Ltd  0144.HK .
    "DFC’s commitment of $553 million in private sector loans
for the West Container Terminal (WCT) will expand its shipping
capacity, creating greater prosperity for Sri Lanka – without
adding to sovereign debt – while at the same strengthening the
position of our allies across the region," DFC CEO Scott Nathan
said in a statement. 
    India extended about $4 billion in swaps and credit lines to
Sri Lanka last year, providing critical support to import fuel,
medicine and fertiliser during the worst of the crisis.  
    India and China vie for influence in the island nation of 22
million, located near busy shipping routes.
    Sri Lankan conglomerate John Keells Holdings owns 34% of the
WCT and the rest is held by the state-run Sri Lanka Ports
Authority (SLPA).
    Dredging for the terminal kicked off last November with the
first stage to be completed in the third quarter of 2024 and the
full project to be finished by the end of 2025. 

 (Reporting by Uditha Jayasinghe; Editing by Kim Coghill)
 ((Uditha.Jayasinghe@thomsonreuters.com;))