Adani-funded port project kicks off in Sri Lanka

Sri Lanka's largest port began on Wednesday construction of a $700 million terminal project, partly funded by the Adani Group, an official said, marking the first foray by an Indian company into the sector. "Dredging commenced in the morning [Wednesday]," Upul Jayatissa, managing director of the state-run Sri Lanka Ports Authority (SLPA), told Reuters.

"The first stage is expected to be done in the third quarter of 2024 and the full project will be completed by 2025-end."

The group holds a 51% stake in the West Container Terminal (WCT) of the port. Sri Lankan conglomerate John Keells Holdings owns 34% of the WCT and the rest is held by the SLPA.

The Adani Group's plans to invest in Sri Lanka's ports ran into controversy last year after powerful port unions pushed for the East Container Terminal (ECT) to be built by the state. Subsequently, the government excluded the company from construction of the ECT.

However, in September the Sri Lankan government of Ranil Wickremesinghe signed a new deal with the group for the west terminal in a different part of the port.