Sri Lanka has reaffirmed it would continue with the Adani Group's proposed Colombo port project, despite recent challenges including US charges against the conglomerate's founder and sudden changes to the financing arrangements.
The government stated on Friday that the deep-sea container terminal project, which is estimated to cost $700 million, would continue as planned. The Colombo West International Terminal (CWIT), a joint venture between Adani Ports, John Keells Holdings, and the Sri Lanka Ports Authority, is designed to enhance the capacity of Colombo’s port, aiming to make it a major transshipment hub in the Indian Ocean. The terminal, initially scheduled to be operational this month, is now expected to open early next year, according to Adani Ports.
Despite the turmoil surrounding Adani, including a recent indictment in New York accusing him and his associates of misleading international investors in a bribery scheme, Sri Lankan officials emphasized the project's necessity. Ports Minister Bimal Ratnayake dismissed any concerns over the legal troubles facing Adani. The group has opted to finance the terminal independently, pulling out of a planned $553 million loan from the US International Development Finance Corporation (DFC), which was originally intended to support the project as a counterbalance to China's growing influence in the region.
"The problem between Adani and the US... is not our concern," he remarked during a port visit, underscoring that the project’s continuation remains a priority. Ratnayake further stressed that the development of the western container terminal by Adani was essential to generate revenue for Sri Lanka's struggling economy, still reeling from a financial crisis and a foreign debt default in 2022. The project is seen as a key contributor to the nation’s economic recovery.
Minister Ratnayake also commented on the broader implications of foreign investments, noting that the Adani project was vital while the government's stance on a separate $442 million wind power deal with Adani remained opposed. This wind power project has faced resistance from Sri Lanka’s new president, Anura Kumara Dissanayake, who campaigned against it, calling it a threat to the nation’s energy sovereignty.
