Adani Ports and Special Economics Zones (APSEZ) Ltd announced on Tuesday that it will fund a Sri Lankan port project with its own resources rather than seeking US funding.
Adani Ports stated
In a stock exchange filing, Adani Ports stated that the construction effort “is on track for commissioning by early next year”.
“We would like to clarify that Colombo West International Terminal (CWIT) construction in Sri Lanka is progressing well and is on track for commissioning by early next year,” according to the Adani Group’s main subsidiary.
“The project will be funded using the company’s own accruals and capital allocation approach. We have withdrew our proposal for finance from the US Development Finance Corporation (DFC),” it said.
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Last November, the US Worldwide Development Financial Corporation agreed to provide a $553 million loan to fund the development, construction, and management of CWIT in Sri Lanka’s Port of Colombo.
Adani Ports, Sri Lankan conglomerate John Keells Holdings Plc, and the Sri Lanka Ports Authority (SLPA) are working together to create the CWIT.
The CWIT construction started in September 2021, when Adani Ports signed a $700 million deal with the Sri Lanka Ports Authority and Sri Lankan corporation John Keells Holdings to enhance Colombo Port’s capabilities.
The CWIT will be Sri Lanka’s biggest and deepest container terminal, with a 1,400-metre quay and a 20-metre alongside depth.
The Port of Colombo is the most important and fastest transshipment port in the Indian Ocean, with above 90% utilisation since 2021, indicating a need for increased capacity.
The new terminal will serve the Bay of Bengal’s growing economy, capitalizing on Sri Lanka’s strategic location along major shipping routes and proximity to these increasing markets.
The new terminal’s annually cargo handling capacity is estimated to surpass 3.2 million.
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