• To finance via internal accruals and capital management plan

India’s Adani Ports and Special Economic Zone Limited said on Tuesday (10) that it would finance its Colombo Port West Terminal project through internal accruals and a capital management plan, withdrawing its request for funding from the United States (US) International Development Finance Corporation (DFC).

The DFC said last year (2023) that it would provide US Dollars ($) 553 million in financing for the Port Terminal project, which is partly owned by the Adani Group.

The company said however that the Colombo West International Terminal project is progressing well and is on track for commissioning by early next year (2025).

The DFC did not immediately respond to a request for comment.

Adani Group, controlled by Indian billionaire Gautam Adani, holds a 51% stake in the West Container Terminal of the Port, which also has a Terminal run by the China Merchants Port Holdings Company Ltd.

The Sri Lankan conglomerate John Keells Holdings owns 34% of the Terminal and the rest is held by the State-run Ports Authority.

Last month (November), US authorities accused Adani Group Chairperson Gautam Adani and seven others of being part of a $ 265 million scheme to bribe Indian officials, and of misleading US investors while raising funds there.

The ports to power conglomerate has termed the allegations “baseless” and said that it would seek “all possible legal recourse”.

Attempts to contact Foreign Affairs Minister Vijitha Herath, Deputy Economic Development Minister Prof. Anil Jayantha Fernando, Deputy Finance and Planning Minister Dr. Harshana Sooriyapperuma, and the Finance and Ports Ministries were to no avail. 

(Reuters)