The first venture into the port terminal industry by an Indian business, Adani Group, is set to get $553 million in funding from the U.S. International Development Finance Corporation (DFC).
The island nation of Sri Lanka, which lies off the southern coast of India, is experiencing its greatest financial crisis in more than 70 years as a result of its foreign exchange reserves plunging to all-time lows last year, which will cause an 8.2% GDP contraction in 2022.
bridges to edible oils With a terminal operated by China Merchants Port Holdings Co Ltd, the port’s west container terminal is 51% owned by the Adani group, which is led by Indian billionaire Gautam Adani.
“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,” Scott Nathan, the CEO of DFC, said in a statement.
During the height of the crisis, India gave Sri Lanka vital help by offering $4 billion in swaps and credit lines, allowing it to import petroleum, medication, and fertiliser.
China competes for influence in the 22 million-person island country situated close to important maritime lanes.
34% of the WCT is owned by the state-run Sri Lanka Ports Authority (SLPA), while the remaining portion is owned by the Sri Lankan corporation John Keells Holdings.
The terminal’s dredging project began in November of last year, with the first phase expected to be done in the third quarter of 2024 and the project as a whole by the end of 2025.