The DFC was established five years ago in response to Beijing’s massive global infrastructure building campaign, known as the Belt and Road Initiative. “It’s high priority for the United States to be active in the Indo-Pacific region,” he told reporters in Colombo after visiting the site of the new terminal. Nathan said that with the loan, Sri Lanka will be the “2nd biggest exposure” for his institution in the Indo-Pacific region, after India.
The other partners are Sri Lanka’s John Keells Holdings, which has a 34% share, and the Sri Lanka Ports Authority with the remaining 15%. The DFC will make a direct loan to the consortium developing the terminal, which is 51% owned by India’s largest port operator, Adani Ports & Special Economic Zones Ltd. The Port of Colombo has been operating near its capacity since 2021, and the new terminal will cater to growing economies in the Bay of Bengal, the DFC said. The announcement comes as Sri Lanka is struggling to recover from a dire financial and economic crisis. The DFC loan of $553 million for the West Container Terminal will “expand its shipping capacity, creating greater prosperity for Sri Lanka - without adding to sovereign debt - while at the same strengthening the position of our allies across the region,” said DFC Chief Executive Officer Scott Nathan.
