After SEC charges, Adani shuns U.S. capital; to fund Sri Lanka port project on its own

Representational view of the Colombo main port
| Photo Credit: Reuters

Adani Ports & Special Economic Zone Limited (APSEZ) has withdrawn the $553 million loan request from the U.S. Development Finance Corporation (DFC) and instead has decided to fund the Colombo West International Terminal (CWIT) in Sri Lanka from internal sources. 

“The CWIT project in Sri Lanka is progressing well and is on track for commissioning by early next year,” the company said in a filing with stock exchanges. 

“The project will be financed through the company’s internal accruals and capital management plan. We have withdrawn our request for financing from the DFC,” the statement added.

“The Colombo terminal project will be funded in-house and it is aligned with our strategic capital discipline. There is no need for capital from the U.S.,” an official said. 

Explained: The Adani Group’s recent port deal in Sri Lanka

Once operational, it will be Sri Lanka’s largest container terminal and this is part of the company’s strategy to be a global player. 

This comes after bribery charges were levelled by U.S. Security and Exchange Commission (SEC) again the Group’s founder Gautam Adani, his relative and some officials of Adani Green Energy and the U.S. Department of Justice issuing summons.