$553 million will be invested by the US International Development Finance Corporation (DFC) in Colombo West International Terminal Pvt Ltd, which is a partnership between the Sri Lanka Ports Authority, John Keells Holdings (JKH), the largest port operator in Sri Lanka, and Adani Ports and SEZ Ltd, the largest port operator in India.
The US government’s development financing organization is called DFC.
According to a statement from Adani Ports and Special Economic Zone Limited (APSEZ), the US investment would assist in the construction of a deepwater container port at the Port of Columbo.
“(It) will attract crucial foreign exchange to Sri Lanka to aid in its economic recovery and facilitate private sector-led growth,” the statement said.
The announcement states that the US, Sri Lanka, and India would promote a long-lasting tradition of collaboration in the creation of environmentally friendly infrastructure, such as smart and green ports.
DFC collaborates with the business sector to provide funding for answers to the most pressing problems that the developing world faces. It makes investments in a variety of industries, including small business, financial services, infrastructure, energy, healthcare, and agriculture.
According to the announcement, this is the first time an Adani project is being funded by the US government via one of its agencies.
The biggest and busiest transshipment port in the Indian Ocean is the Port of Columbo. Since 2021, it has operated at a rate of above 90% utilization, indicating a need for greater capacity.
As to the statement, the new port would serve the Bay of Bengal’s booming economies by capitalizing on Sri Lanka’s strategic location on key shipping routes and its close proximity to these emerging markets.
