The Sri Lankan government is in favor of moving forward with the deep-water container terminal project at the Colombo port and has no objections to the Adani-led conglomerate using its own resources to finance it, according to Ports Minister Bimal Rathnayaka.
In a recent exchange filing, Adani Ports and SEZ Ltd confirmed that the project is progressing as planned and is expected to be commissioned early next year. The company will be funding the project through internal accruals, in line with its capital management strategy.
“It is a very important project for revenue generation for the port, we are keen to see it going ahead,” said Mr. Rathnayaka during a visit to the port.
He also mentioned that Sri Lanka has no issues with Adani’s decision to decline funding from the U.S. International Development Finance Corporation (DFC).
The DFC had previously agreed to provide a $553 million loan for the development of the Colombo West International Terminal (CWIT) at the Port of Colombo, a project being undertaken by a consortium including Adani Ports, John Keells Holdings Plc, and the Sri Lanka Ports Authority.
Despite the initial agreement, Adani Ports decided to proceed with the project without DFC funding, citing the project’s advanced stage of completion.
While the government supports the container terminal project, it remains opposed to another Adani project, a wind power project in Mannar, citing concerns about its impact on Sri Lanka’s interests.
Published – December 13, 2024 01:54 pm IST
