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The US International Development Finance Corporation (DFC) will be investing funds to the tune of $553 million in Colombo West International Terminal Pvt Ltd – a consortium of India's largest port operator Adani Ports and SEZ Ltd, Sri Lanka's leading enterprise John Keells Holdings (JKH) and the Sri Lanka Ports Authority.
DFC is the US government's development finance institution.
Adani Ports and Special Economic Zone Limited (APSEZ) in a statement said that the US fund will support the development of deepwater shipping container terminal in the Port of Colombo.
"(It) will facilitate private sector-led growth and attract crucial foreign exchange to Sri Lanka to aid in its economic recovery," it added.
According to the statement, the US, Sri Lanka and India will foster an enduring legacy of cooperation in the development of sustainable infrastructure, like smart and green ports.
DFC partners with the private sector to finance solutions to the most critical challenges facing the developing world.
It invests across sectors, including energy, healthcare, infrastructure, agriculture and small business and financial services.
As per the statement, this is the first time that the US government, through one of its agencies, is funding an Adani project.
The Port of Colombo is the largest and busiest transshipment port in the Indian Ocean.
It has been operating at more than 90 per cent utilisation since 2021, signalling its need for additional capacity.
According to the statement, the new terminal will cater to growing economies in the Bay of Bengal, taking advantage of Sri Lanka's prime position on major shipping routes and its proximity to these expanding markets.