The Adani Group, along with its Sri Lankan and regional partners, is moving forward with the expansion of the Colombo West International Terminal (CWIT), a project poised to reshape trade flows in the Indian Ocean. With completion expected by late 2026, the terminal’s capacity will more than double, underscoring Sri Lanka’s role as a key logistics hub between East and West.

Expansion and Investment

The expansion, valued at $840 million, will boost CWIT’s capacity to handle 3.2 million containers annually. This positions the terminal as one of the most modern and efficient in South Asia, catering primarily to India-related trade, which forms the bulk of its business.

Funding Strategy

Originally, Adani Ports had sought $553 million in funding from the U.S. International Development Finance Corporation (DFC). However, the group later withdrew the request and decided to finance the project internally, showcasing confidence in its financial strength and long-term prospects in the region.

Geopolitical Significance

Sri Lanka’s port expansion comes against the backdrop of growing competition between India and China for influence in the Indian Ocean. The Colombo terminal, in particular, strengthens India’s maritime connectivity while offering Sri Lanka a revenue boost and strategic leverage.

Challenges and Allegations

Despite its progress, Adani has faced scrutiny, including allegations of involvement in a bribery scheme—claims that the group has strongly denied. Nonetheless, momentum around the Colombo project remains positive, with Sri Lanka continuing to engage Adani in discussions for renewable energy investments, even after the group’s withdrawal from two planned $1 billion wind projects.

Partnership Framework

CWIT represents a collaborative effort, bringing together Indian corporate investment, Sri Lankan private sector expertise, and state participation. The ownership structure reflects this balance:

• Adani Ports and Special Economic Zone (APSEZ): 51%
• John Keells Holdings: 34%
• Sri Lanka Ports Authority (SLPA): 15%

Key Data Snapshot

Factor	Details
Project Name	Colombo West International Terminal (CWIT)
Expansion Completion	Late 2026
Total Investment	$840 million
Annual Capacity Post-Expansion	3.2 million containers
Initial Funding Plan	$553 million U.S. DFC loan (withdrawn)
Current Funding	Internal resources by Adani
Main Trade Source	India
Geopolitical Context	India-China competition in Indian Ocean
Ownership Structure	Adani Ports (51%), John Keells (34%), SLPA (15%)
Other Adani Projects in SL	Renewable energy under discussion; $1 billion wind projects withdrawn
Recent Allegations	Bribery accusations (denied by Adani)

Outlook

The Colombo West International Terminal expansion signals a strengthening of India–Sri Lanka trade relations while enhancing the island nation’s status as a logistics gateway in South Asia. Despite political challenges and controversies, the partnership remains on track, with expectations of both economic and strategic dividends by 2026.