Last Updated: November 08, 2023, 10:42 IST
A basic view of the primary port in Colombo, Sri Lanka June 29, 2023. (Reuters File Photo)
Ports-to-edible oils Adani group, managed by Indian billionaire Gautam Adani, holds a 51% stake within the west container terminal of the port
The US International Development Finance Corporation (DFC) mentioned on Wednesday it’ll present USD 553 million in financing for a Colombo port terminal undertaking, partly owned by India’s Adani Group.
“The $553 million investment by DFC for the long-term development of the Port of Colombo’s West Container Terminal will facilitate private-sector-led growth in Sri Lanka and attract crucial foreign exchange inflows during its economic recovery. This financing is symbolic of the United States’ long-standing commitment to the development and well-being of the people of Sri Lanka. Sri Lanka regaining its economic footing will further our shared vision for a free and prosperous Indo-Pacific,” U.S. Ambassador to Sri Lanka Julie Chung mentioned in an announcement.
In simply 4 years, DFC has gone from beneath $20 million to now nearly $1 billion {dollars} invested throughout Sri Lanka.Today in Colombo, @RW_UNP and CEO Nathan mentioned alternatives to take DFC’s partnership with Sri Lanka to the following stage. pic.twitter.com/2WYPyBiXVj
— DFCgov (@DFCgov) November 7, 2023
Sri Lanka is slowly recovering from its worst monetary disaster after its international trade reserves ran to report lows final 12 months forcing its financial system to contract by 7.8% in 2022. Ports-to-edible oils Adani group, managed by Indian billionaire Gautam Adani, holds a 51% stake within the west container terminal of the port, which additionally has a terminal run by China Merchants Port Holdings Co Ltd, in keeping with Reuters.
In simply 4 years, DFC mentioned its funding has gone from beneath $20 million to nearly $1 billion {dollars} invested throughout Sri Lanka. “DFC’s commitment of $553 million in private sector loans for the West Container Terminal (WCT) will expand its shipping capacity, creating greater prosperity for Sri Lanka – without adding to sovereign debt – while at the same strengthening the position of our allies across the region,” DFC CEO Scott Nathan mentioned in an announcement.
India prolonged about USD 4 billion in swaps and credit score strains to Sri Lanka final 12 months, offering crucial help to import gasoline, medication and fertiliser throughout the worst of the disaster. The company report mentioned Sri Lankan conglomerate John Keells Holdings owns 34 p.c of the WCT and the remainder is held by the state-run Sri Lanka Ports Authority (SLPA). It added that dredging for the terminal kicked off final November with the primary stage to be accomplished within the third quarter of 2024 and the total undertaking to be completed by the tip of 2025.
(With company inputs)
