US Invests $553 Million in Sri Lankan Port Terminal to Counter Chinese Influence

8 Nov 2023 , 01:12 PM

The US is investing $553 million in financing for a port terminal in Sri Lanka’s capital, Colombo, which is being developed by Indian billionaire Gautam Adani. This investment by the International Development Finance Corp. is the agency’s largest infrastructure investment in Asia and one of its biggest globally.

The funding aims to boost Sri Lanka’s economic growth and enhance its regional economic integration, particularly with India, as stated by the DFC. It is seen as a move to counter China’s influence in South Asia and reduce Beijing’s control over Sri Lanka, which incurred significant debt through Chinese port and highway projects.

The US is actively engaged in development projects in the Indo-Pacific region, with a focus on Sri Lanka port financing. The port in Colombo is strategically important due to its proximity to international shipping routes, with nearly half of all container ships passing through its waters.

The DFC will collaborate with sponsors John Keells Holdings Plc and Adani Ports & Special Economic Zone Ltd., leveraging their local experience and high-quality standards to develop the project.

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