Full steam ahead on Sri Lanka port plan

India’s Adani Group and its partners are set to double the capacity of a $840 million container terminal in Colombo months ahead of schedule, despite relinquishing $553 million in US funding, an executive at partner firm John Keells Holdings told Reuters.

- KRISHNA N. DAS UDITHA JAYASINGHE

The deepwater Colombo West International Terminal, located next to a facility run by China Merchants Port Holdings, underscores Sri Lanka's geopolitical significance in the tug-of-war for Indian Ocean influence between New Delhi and Beijing.

Adani opened the first phase of the fully automated terminal in April, making it operational. The second and final phase is underway and expected to be completed by late 2026, three to four months ahead of the February 2027 deadline, said Zafir Hashim, head of transportation at John Keells.

The accelerated timeline, which has not been previously reported, was unexpected in the wake of Sri Lanka's deep financial crisis that brought foreign investment in the country to a virtual standstill.

Once the final phase is complete, the terminal will have the capacity to handle 3.2 million containers annually, Mr Hashim said, boosting the overall throughput of the port in Colombo.