American company will invest $553 million in Gautam Adani’s joint venture, China will get a shock again!
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Gautam Adani American company DFC has planned to make a big investment in Adani Ports and Special Economic Zone Limited. It is being told that US International Development Finance Corporation (DFC) will invest US$ 553 million in Colombo West International Terminal Private Limited. Colombo West International Terminal Private Limited is owned by India’s largest port manager Adani Ports & SEZ Limited, Sri Lankan flagship enterprise John Keells Holdings (JKH) and Sri Lanka Ports Authority. DFC is the development finance agency of the US government. According to a statement issued by Adani Ports and Special Economic Zone Limited (APSEZ), this amount will be used for the development of deep water shipping container terminal in Colombo Port. According to the statement, it will facilitate private sector-led growth and attract significant foreign exchange to aid Sri Lanka’s economic recovery. The US, India and Sri Lanka will promote the development of sustainable infrastructure such as ‘smart’ and green ports. Karan Adani, Whole-time Director and Chief Executive Officer (CEO) of APSEZ, said that we welcome the support of the US International Development Finance Corporation, the development finance institution of the US government, in financing the Adani project.
Sri Lanka will prosper without debt growth
Karan Adani said that the Colombo West International Terminal project, upon completion, will create new employment directly and indirectly and boost Sri Lanka’s trade and commerce ecosystem in a big way. It will change the socio-economic landscape not only in Colombo but across the island. DFC CEO Scott Nathan said Sri Lanka is one of the world’s major transit hubs, with half of all container ships passing through its waters. He said DFC’s commitment of US$553 million in private sector loan for the West Container Terminal will enhance its cargo handling capacity. This will make Sri Lanka more prosperous without increasing debt, while also strengthening the position of our allies across the region. US Ambassador to Sri Lanka Julie Chung said the US$553 million investment by DFC for the long-term development of the Colombo Port West Container Terminal will facilitate private sector-led development in Sri Lanka and attract significant foreign exchange inflows during its economic recovery. . Krishna Balendra, head of John Keells Holdings, said DFC’s investment will support the potential of the West Terminal project. He said that investor confidence has been boosted with the improvement in Sri Lanka’s economy.
Adani Ports shares shine
After the news of US International Development Finance Corporation’s investment in Colombo West International Terminal Private Limited, tremendous action was seen in the shares of Adani Ports in the Indian stock market. The company’s shares were trading at Rs 820.20 at 1.50 pm, up 2.84 percent i.e. 22.65 paise. At the time of market opening this morning, the share opened at Rs 802, whereas at the time of trading it had reached the level of Rs 823. In the last 52 weeks, the company’s shares had reached a maximum level of Rs 916.
Why would China be worried?
The DFC is part of a global acceleration in investment, which will total $9.3 billion by 2023. China had invested about $2.2 billion in Sri Lanka by the end of last year, making it its largest foreign direct investor. US officials have publicly criticized Sri Lanka’s under-utilized southern Hambantota port, calling it unstable and part of China’s “debt-trap diplomacy”. DFC said it will work with sponsors John Keells Holdings PLC and Adani Ports and Special Economic Zone Limited, relying on their local experience and high quality standards. Due to its proximity to international shipping routes, the Port of Colombo is one of the busiest ports in the Indian Ocean. Nearly half of all container ships pass through its waters. China’s problems are likely to increase due to investment by Adani and American companies.
,with language input,
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