India’s Adani Group and its partners are on track to double the capacity of an $840 million container terminal in Colombo months earlier than planned, even after stepping away from $553 million in US financing.
The Colombo West International Terminal (CWIT), a deepwater facility located next to a terminal operated by China Merchants Port Holdings, highlights Sri Lanka’s strategic position in the contest for influence across the Indian Ocean between New Delhi and Beijing.
Adani commissioned the first phase of the fully automated terminal in April, bringing it into operation. Construction of the second and final phase is progressing faster than anticipated and is now expected to conclude by late 2026—three to four months ahead of the original February 2027 deadline, said Zafir Hashim, head of transportation at John Keells.
The acceleration comes despite Sri Lanka’s prolonged financial crisis, which had stalled foreign investment flows into the country. Upon completion, the terminal will be capable of handling 3.2 million containers annually, significantly enhancing Colombo Port’s overall throughput.
A majority of the traffic through CWIT originates from India. Adani had initially sought financing from the U.S. International Development Finance Corporation (DFC) but withdrew the request in December, choosing instead to fund the project through internal accruals and a capital management strategy.
The decision followed U.S. authorities’ accusations that Adani Group Chairman Gautam Adani and others were involved in a bribery scheme—allegations the company has strongly denied.
Adani Ports and Special Economic Zone (APSEZ) holds a 51% stake in the terminal, while John Keells owns 34% and the Sri Lanka Ports Authority the remaining share.
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