Adani Group Withdraws from US Loan Deal for Sri Lanka Port Project

Adani Ports pulls out from a $553 million US agency loan for a terminal project in Colombo, choosing to self-fund. The move follows stalled negotiations with the US International Development Finance Corporation over the loan agreement terms. This development underscores geopolitical tensions involving US and Chinese influences.

Adani Ports and Special Economic Zone Ltd has decided to self-finance a major terminal project at the Port of Colombo in Sri Lanka, opting out of a previously planned loan with a US agency. The company confirmed the project's on-schedule completion by early next year.

The decision reflects stalled discussions with the US International Development Finance Corporation (DFC), initially poised to provide $553 million. As conditions demanded an amendment of the agreement between Adani and Sri Lanka Ports Authority, scrutiny by the country's Attorney General ensued.

The withdrawal aligns with the US's strategic goals in the region. Adani's decision comes amid bribery allegations involving its executives, which the group denies. Despite financial shifts, the project remains crucial for expanding the port's capacity to accommodate global shipping demands.

(With inputs from agencies.)