India’s Adani Group and its partners plan to double the capacity of an $840 million container terminal in Colombo several months ahead of schedule, despite giving up $553 million in U.S. funding, Reuters reported, citing a partner executive.
The Colombo West International Terminal, a deepwater facility next to one operated by China Merchants Port Holdings, highlights Sri Lanka’s strategic role in regional competition for Indian Ocean trade routes.
The first phase of the fully automated terminal was opened in April. The second and final phase is expected to be completed by late 2026, three to four months ahead of the original February 2027 deadline, John Keells Holdings transportation head Zafir Hashim told Reuters. Once finished, the terminal will be able to handle 3.2 million containers annually, with most of the traffic originating from India.
Adani Ports holds a 51 percent stake in the project, John Keells 34 percent, and the Sri Lanka Ports Authority the remainder, according to Reuters.
The accelerated timeline follows Adani’s decision in December to withdraw a funding request from the U.S. International Development Finance Corp. after U.S. authorities accused Adani Group Chairman Gautam Adani and others of involvement in a bribery scheme. The company has rejected the allegations.
“Working with Adani, we really haven’t seen anything to worry about,” Hashim told Reuters. “Until something is proven, we are partners … They have been a very good partner to work with.”
Sri Lanka is also considering further Adani investments in renewable energy, Energy Minister Kumara Jayakody told Reuters, though Adani withdrew from two proposed wind power projects earlier this year after the new government sought to renegotiate purchase rates. (Newswire)
