Adani Ports opts out of U.S. funding for Colombo project

Adani Group to fund Sri Lankan port project internally, withdrawing from U.S. financing amid bribery allegations.

Billionaire Gautam Adani-led conglomerate on Tuesday (December 11, 2024) said it will use its own resources to fund a Sri Lankan port project and not seek U.S. funding.

In an exchange filing late on Tuesday, Adani Ports and SEZ Ltd said the project "is on track for commissioning by early next year" and added that the company will fund the ongoing project through "internal accruals", aligning with its capital management strategy.

The company said it has withdrawn its 2023 "request for financing from the U.S. International Development Finance Corporation (DFC)".

In November 2023, the U.S. International Development Finance Corp agreed to provide a $553 million loan to support the development, construction, and operation of a deep-water container terminal called the Colombo West International Terminal (CWIT) at the Port of Colombo in Sri Lanka.

The CWIT is being developed by a consortium of Adani Ports, Sri Lankan conglomerate John Keells Holdings Plc, and the Sri Lanka Ports Authority (SLPA).

DFC financing was part of the U.S. government's broader efforts to counter China's growing influence in the region and was seen as an endorsement of Adani's ability to develop world-class infrastructure.

However, the loan process stalled after the DFC asked that the agreement between Adani and the SLPA be amended to align with their conditions, which then went under review by Sri Lanka’s Attorney General. As the project is nearing completion, Adani Ports, which holds 51% of the venture, chose to proceed with the project without funding from the DFC, officials privy to the process explained.