US Commits $553 Mn Adani Group to Enhance Colombo Port's West Container Terminal
The United States has decided to give USD 553 million to help improve the Colombo port's West Container Terminal (WCT) in Sri Lanka. This terminal is partly owned by the Adani group. According to media reports, the move is being taken to counter China's influence in Sri Lanka.
As per media reports, the Adani group, along with partners from Sri Lanka, will use the money for a 20-year project to expand and improve the WCT. The total cost is USD 1.2 billion, and it will happen in two phases.
The US funding comes from the US International Development Finance Corporation (USIDFC). The Adani group owns 51 per cent of the WCT, and their partners are the Sri Lankan Ports Authority and John Keells Holdings.
Reports say that this support from the US is seen as a positive sign for the Adani group. The US government agency believes in the group's ability to create a world-class container facility in Colombo Port. It is also good news for Sri Lanka because it means they will not have to take on more debt for this project.
The US funding is seen as a response to China's involvement in Sri Lanka's ports. As per the reports, China already has a long lease on Sri Lanka's second-largest port, Hambantota. The Adani-led group will develop the Colombo West International Terminal on a build, operate, and transfer basis for 35 years.
