Adani Ports Withdraws Funding Request for Colombo Project

(Reuters) – India's Adani Ports and Special Economic Zone Ltd announced on Tuesday that it will finance its Colombo port terminal project through internal accruals and a capital management plan. Consequently, it has withdrawn its request for funding from the U.S. International Development Finance Corp (DFC).

Last year, DFC stated it would provide $553 million in financing for the port terminal project, which is partially owned by the Adani Group.

The company affirmed that the Colombo West International Terminal project is progressing well and is on track for commissioning by early 2025.

DFC did not immediately respond to a request for comment from Reuters.

Gautam Adani, controlled by Indian billionaire Gautam Adani, holds a 51% stake in the west container terminal of the port, which also includes a terminal operated by China Merchants Port Holdings Co Ltd.

Sri Lankan conglomerate John Keells Holdings owns 34% of the terminal, while the remainder is held by the state-run Sri Lanka Ports Authority.

Last month, U.S. authorities accused Adani Group Chairman Gautam Adani and seven others of involvement in a $265 million scheme to bribe Indian officials and misleading U.S. investors while raising funds. The ports-to-power conglomerate has labeled the allegations as "baseless" and announced it would pursue "all possible legal recourse."