Adani Ports Withdraws $553 Million US Loan for Colombo Port Project, Plans Internal Funding

Billionaire Gautam Adani’s Adani Ports and Special Economic Zone (APSEZ) has decided to pull out of a $553 million loan agreement with the US International Development Finance Corporation (DFC) for developing a port terminal in Colombo, Sri Lanka. The company announced it would fund the project through internal accruals and a capital management plan.

Adani Ports Opts for Internal Funding

In a recent filing, APSEZ confirmed the withdrawal, stating: “The project will be financed through the company's internal accruals and capital management plan. We have withdrawn our request for financing from the DFC.”

The loan agreement, initially signed last year, was part of a broader US effort to offer infrastructure funding alternatives to China's growing influence in the developing world.

Rejection of Allegations

The Adani Group has denied bribery allegations made in a US court filing, where it was accused of offering $265 million to Indian officials to secure solar energy projects. Both Adani and Adani Ports have dismissed the claims as "baseless."

Political Fallout in India

The allegations have sparked fresh controversy in India, with opposition parties accusing Prime Minister Narendra Modi of favoritism toward Gautam Adani. Critics point to both figures hailing from Gujarat as evidence of alleged preferential treatment. However, the Adani Group has categorically rejected these claims.

Sri Lanka’s Political Context

This development comes ahead of Sri Lanka's newly elected President Anura Kumara Dissanayake’s scheduled visit to India from December 15-17, his first foreign trip since assuming office. The Colombo Port project, a critical infrastructure initiative, remains a focal point for strengthening India-Sri Lanka ties amid regional competition with China.

A Shift in Funding Strategy

The move to self-fund the Colombo Port terminal signals Adani Ports’ confidence in its financial stability and operational resilience, even as it navigates ongoing controversies.