The US development agency has stated that no money has been provided to the Adani Group for the Sri Lankan port project thus far.

US DFC Yet to Disburse Funds for Adani’s Sri Lankan Port Project

The US International Development Finance Corporation (DFC) also committed USD 553 million in the form of a loan to the Adani Group last year for building a port in Sri Lanka but not a single rupee has been released as yet. According to a DFC official, the project has not reached financial close and no loan agreement has been signed. The DFC is still doing due diligence to ensure that all aspects of the project meet their standards strictly before funds can be released.

The loan has been earmarked for the construction of the Colombo West International Terminal (CWIT), a deep-water container terminal, being developed by consortium members Adani Ports, John Keells Holdings of Sri Lanka, and Sri Lanka Ports Authority at the Port of Colombo.

The port project is strategically important for countering China’s influence in Sri Lanka and supporting the island nation’s economy.

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However, an official from the Adani Group stated that the port is nearing completion and does not rely on funds from the DFC. Phase 1 of the CWIT project is on track and will be commercially operational by early 2025. The spokesperson clarified that the DFC’s due diligence processes have not affected the project.

Attending to the DFC will be perceived as a measure to enhance the project’s credibility. Once funds are sanctioned, the funds would most probably be utilized to roll over existing funds of the project. GQG Partners, one of the key investors of Adani Group, described it as shocking that the US administration would be involved in this project when US authorities are probing into the officials of the Adani Group.

While officials of the Adani Group have been indicted both by the US Department of Justice and the Securities and Exchange Commission for bribery over alleged corrupt practices in solar power contracts, Adani Ports officials confirm that those charges do not implicate it. While insisting upon integrity in its projects, the DFC remains undecided on whether it will go ahead with continuing the loan for the Sri Lankan port development or merely pull back.

Shares of Adani Ports fall by 3.23% on Bombay Stock Exchange as stock closed at ₹1,128.8 per share.

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