US Invests $553 Million in Sri Lanka Port to Counter China's Influence and Bolster Regional Economic Growth

Infrastructure investment by the US and Indian tycoon Gautam Adani in Sri Lanka's West Container Terminal, amid economic crisis and China's deepening regional influence, intends to lessen Beijing's hold and boost Sri Lanka's potential as a key logistics hub.

The US and India are jointly investing $553 million in Sri Lanka's West Container Terminal to counteract China's influence within the region and boost regional economic growth.
This port terminal investment is regarded as the US government agency's largest infrastructure investment in Asia and amongst its biggest globally, which underpins renewed efforts by the US and India to reduce China's sway over Sri Lanka.
Funding provided by the International Development Finance Corp (DFC) will help Sri Lanka bolster its economic growth and regional economic integration, particularly with India. DFC considers it a high priority to be active in the Indo-Pacific region, recognized as the engine of economic growth for the world.
The West Container Terminal in Colombo, Sri Lanka, has been operating at more than 90% utilization for two years and needs new capacity. The DFC investment will expand its shipping capacity without adding to Sri Lanka's sovereign debt.
This US funding could also act as an endorsement for the Adani Group, which owns a majority stake in the port project. The conglomerate, which has been fighting against allegations of corporate fraud, is planning to invest further in Sri Lanka, with $750 million aimed at producing 500 megawatt wind energy.

South China Morning Post