Adani group on Thursday signed a more than $700-million agreement with the Sri Lanka Ports Authority (SLPA) and conglomerate John Keells Holdings, becoming the largest foreign investor in the island nation’s ports sector.
The three parties signed a build-operate-transfer agreement spanning 35 years to jointly develop a container terminal at Colombo Port, the SLPA said. The commencement of the Colombo West International Container Terminal is expected to add more than 3 million annual TEU capacity to the Port of Colombo “With the signing of the agreement, and the massive development thereafter, the Port of Colombo will further enhance its global reputation as an international hub port,” the Ports Authority said.
Earlier this year, the Rajapaksa administration announced the involvement of the Adani Group in the development of the West Container Terminal project at the Colombo Port, after India and Japan conveyed their displeasure over being ejected out of a project to jointly develop the East Container Terminal. The Adani group and its local partner will together bring in 85% of the investment in the West Container Terminal, while SLPA will hold the remaining 15% stake, port officials said.