Sri Lanka: Adani Ports’ Colombo Project Gets Green Light, But Mannar Wind Power Plant Plans Face Resistance

The Sri Lankan Government has affirmed its support for the Adani-led conglomerate's deep-water container terminal project at Colombo Port, emphasising there are no objections to Adani funding the initiative through its own resources.

Ports Minister Bimal Rathnayaka stated, "It is a very important project for revenue generation for the port, we are keen to see it going ahead."

In an exchange filing on Tuesday, Adani Ports and SEZ Ltd confirmed that the Colombo West International Terminal (CWIT) project "is on track for commissioning by early next year" and highlighted that the funding would be managed through "internal accruals," aligning with its capital management approach.

The CWIT project, a joint venture between Adani Ports (holding a 51 per cent stake), Sri Lanka’s John Keells Holdings Plc, and the Sri Lanka Ports Authority (SLPA), is considered a crucial revenue-generating asset for the Colombo Port.

Initially, the US International Development Finance Corporation (DFC) had committed $553 million to support the project's development as part of broader US efforts to counter China's growing regional influence.

However, the funding agreement stalled when the DFC sought amendments to the agreement between Adani and SLPA, subjecting it to a review by Sri Lanka's Attorney General.

Despite this, Adani Ports chose to proceed with the project independently, without DFC funding.

On Thursday (12 December), Minister Rathnayaka clarified that the Adani Group’s rejection of DFC funding was a decision of its own and reiterated that Sri Lanka had no issues with the move.

In contrast, the Sri Lankan Government continues to oppose Adani’s wind power project in Mannar, citing conflicts with the nation’s interests.

Referring to fundamental rights petitions filed against the project by environmentalists, Rathnayaka remarked, "The president and the government have informed the court our reasons to oppose it."

President Anura Kumara Dissanayake, who has been vocal during his election campaign for the 21 September presidential polls, had vowed to cancel Adani Green Energy’s Mannar wind power project if elected.

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