Adani Ports and Special Economic Zone Ltd (APSEZ), a subsidiary of the Adani Group, has signed a deal with the Sri Lankan government and a local partner to build and operate a port terminal in Colombo, the capital city of Sri Lanka.
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| Adani Group project |
Funding for US Adani Group to end China
The project will receive $553 million (about Rs. 4,590 crore) funding from the US International Development Finance Corporation (DFC), the US government's development finance institution. This is the first time that a US government agency is funding an Adani project.
The port terminal, called the Colombo West International Container Terminal (CWICT), will be developed on a build, operate and transfer (BOT) basis for 35 years.
The Adani Group will have a 51% stake in the project, while the Sri Lanka Ports Authority (SLPA) will have 15% and John Keells Holdings, a Sri Lankan conglomerate, will have 34%. The project is expected to cost more than $700 million and will be the largest foreign investment in Sri Lanka's port sector.
The port terminal will cater to the growing economies in the Bay of Bengal, taking advantage of Sri Lanka's prime position on major shipping routes and its proximity to these expanding markets.
The project is also seen as a counterbalance to China's growing influence in the region, as China has invested heavily in Sri Lanka's port and infrastructure projects, such as the Colombo International Container Terminal (CICT) and the Hambantota Port.
The project will also boost Sri Lanka's trade and commerce ecosystem and create thousands of direct and indirect employment opportunities.
Adani Group in power sector in Sri Lanka Rs. 6225 crore investment
Adani Group has committed to invest Rs. 6,225 crore (US$ 788 million) in the power sector in Sri Lanka. The company has signed a memorandum of understanding (MoU) with the Ceylon Electricity Board (CEB) to develop a 1,000 MW power plant in Mannar, Sri Lanka. The project is expected to cost Rs. 5,113 crore (US$ 643 million).
Adani Group will also invest Rs. 1,112 crore (US$ 145 million) in a transmission line project that will connect the power plant to the national grid. The transmission line project is expected to be completed by 2024.
The investment by Adani Group is a major boost for the power sector in Sri Lanka. The country has been struggling with power outages in recent years, but the government is hopeful that the new power plant will help to improve the situation.
The project is also expected to create jobs and boost economic activity in the Mannar region.
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