Adani Ports and SEZ Ltd, the billionaire Gautam Adani-led conglomerate, has announced that it will use its own resources to fund the Colombo West International Terminal (CWIT) project in Sri Lanka, rather than seeking financing from the US International Development Finance Corporation (DFC). The company stated that the project is on track for commissioning by early next year and that it has withdrawn its 2023 request for funding from the DFC.
The decision comes as the DFC had asked Adani to amend the agreement between the company and the Sri Lanka Ports Authority (SLPA) to align with their conditions, which then went under review by Sri Lanka’s Attorney General. With the project nearing completion, Adani Ports, which holds a 51% stake in the venture, has chosen to proceed without the DFC’s funding.
The CWIT project, which is being developed by a consortium of Adani Ports, Sri Lankan conglomerate John Keells Holdings Plc, and the SLPA, is seen as a geopolitically sensitive move by the US to counter China’s growing influence in the region. The new terminal is expected to cater to the growing economies in the Bay of Bengal and take advantage of Sri Lanka’s strategic location on major shipping routes.
