India's Adani opens giant Sri Lanka container terminal
Business
By
AFP
| Apr 07, 2025
India's Adani Group said on Monday it had opened an $800 million container terminal in Sri Lanka, right next to a similar facility operated by a Chinese company.
The Adani development at Sri Lanka's main seaport in Colombo is widely seen as a counter to the rival Chinese terminal and as a means for India to secure a foothold at the strategic facility.
The launch of the Adani-operated facility came a day after Indian Prime Minister Narendra Modi concluded a state visit to Sri Lanka, during which he secured defence and energy deals with Colombo.
"The commencement of operations at CWIT (Colombo West International Terminal) marks a momentous milestone in regional cooperation between India and Sri Lanka," billionaire chairman Gautam Adani, a key ally of Modi, said in a statement.
Sri Lanka lies at a key halfway point along the main east-west international maritime route and Colombo is a major transhipment hub for South Asia.
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The company said it had completed 600 metres (660 yards) out of a final 1,400-meter-long berth with a depth of 20 metres that can handle the largest container ships.
'Global maritime map'
"Not only does this terminal represent the future of trade in the Indian Ocean, but its opening is also a proud moment for Sri Lanka, placing it firmly on the global maritime map," Adani said.
The joint venture went ahead despite the Indian conglomerate withdrawing in December a request for a US government-backed $533 million loan for the construction.
The move followed an indictment in New York in November 2024, which accused the Adani Group of deliberately misleading international investors as part of a bribery scheme. Adani has denied any wrongdoing.
The other partners in the Adani Port venture are Sri Lanka's publicly listed John Keells Holdings and the state-owned Sri Lanka Ports Authority.
Construction began in early 2022, with the first phase featuring eight automated ship-to-shore cranes and 18 gantry cranes.
There were no public statements from either side during Modi's visit about Adani's withdrawal from another venture, a $442 million wind power project in the north of Sri Lanka.
That withdrawal followed a decision by President Anura Kumara Dissanayake's administration to revoke a power purchase agreement with the Adani Group in order to negotiate lower energy prices.
Dissanayake's party had strongly criticised the deal as "corrupt" and called for it to be renegotiated.