Adani Ports and Special Economic Zone Ltd. on Tuesday said it will finance the Colombo West International Terminal project in Sri Lanka through the company's internal accruals and opted out of US funding.
The Colombo project is progressing well and is on track for commissioning by early next year, the company said in an exchange filing.
"The project will be financed through the company's internal accruals and capital management plan. We have withdrawn our request for financing from the DFC," it added.
Last year, the Adani Group received $553 million in funding from the US International Development Finance Corp. for the strategically significant Colombo West International Terminal.
The decision to withdraw from US financing comes after the Sri Lanka Ports Authority last month reaffirmed its commitment for Adani Port's Colombo West International Project. In a statement, SLPA Chairman Admiral Sirimewan Ranasinghe (Retd) emphasised that there is no immediate plan to reassess or terminate the agreement.
Adani Group is playing a vital role in expanding the country's port infrastructure. The Colombo terminal project, which involves a $1-billion fund infusion, will mark the largest foreign direct investment in Sri Lanka's port sector.
When complete, the terminal will be able to handle Ultra Large Container Vessels (ULCVs) with capacities of 24,000 TEUs and is expected to have an annual handling capacity of over 3.2 million TEUs.
The Port of Colombo, the largest transhipment hub in the Indian Ocean, has been operating at over 90% utilisation since 2021, highlighting the need for additional capacity. The Colombo West International Terminal project, launched in September 2021, aims to address this demand.
Adani Ports, in partnership with the Sri Lanka Ports Authority and Sri Lankan conglomerate John Keells Holdings, committed over $700 million to develop the CWIT. This investment is expected to make the CWIT the largest and deepest container terminal in Sri Lanka.
With a quay length of 1,400 metres and an alongside depth of 20 metres, the terminal will accommodate Ultra Large Container Vessels (ULCVs) with capacities of up to 24,000 TEUs. Once fully operational, it will have an annual handling capacity of over 3.2 million TEUs.
The new terminal is strategically designed to cater to the growing economies in the Bay of Bengal, leveraging Sri Lanka's prime location on major global shipping routes and its proximity to expanding markets in the region.
The CWIT project also holds geopolitical significance. It represents efforts to balance regional influence in Sri Lanka, with international stakeholders keenly observing its progress.
(With inputs from PTI.)
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