SLPA takes measured approach towards Adani’s Colombo port deal

The Sri Lanka Ports Authority (SLPA) has affirmed its commitment to maintaining stability regarding the Colombo West International Terminal project, led by the Adani Group, amidst ongoing allegations in the U.S. against the conglomerate’s top executives. SLPA Chairman Admiral Sirimewan Ranasinghe (Retd) has emphasized that there is no immediate plan to reassess or terminate the agreement.

“Nothing is discussed about cancelling the deal at all,” Ranasinghe clarified, speaking to Indian business newspaper Economic Times. He highlighted that the Adani Group has met its obligations under the agreement, bringing in necessary investments and equipment. Furthermore, he pointed out that the project has consistently progressed according to plan, making it a valuable part of Sri Lanka’s economic infrastructure.

The U.S. International Development Finance Corporation (DFC) had announced a $553 million loan to support the terminal’s development, highlighting its strategic importance. However, disbursement has been delayed due to required amendments to the Build-Operate-Transfer (BOT) agreement, which are under review.

Ranasinghe noted that these charges do not implicate the operations of the Colombo terminal. He asserted, “The owner of this company (CWIT) is not involved in any nefarious activity here in Sri Lanka.”

The Adani Group has staunchly denied all allegations, labeling them ‘baseless’ and committing to legal recourse. The West Container Terminal project represents Sri Lanka’s largest foreign direct investment in its port sector, with a 35-year agreement worth $1 billion. Upon completion, the terminal will position Colombo as a premier transshipment hub in the Indian Ocean, capable of accommodating ultra-large container ships, also strengthening regional trade.

Ranasinghe reiterated that the SLPA’s engagement with the Adani Group remains productive. “CWIT is continuing with their work and it is doing fine,” he said. As legal processes unfold, the SLPA’s focus remains on building economic progress through this critical infrastructure initiative.

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