Over Half a Billion Loan to Adani: Sri Lanka’s Affront by the US?

When Ambassador Chung and her masters overwhelmingly brag about job creation and strengthening the national economy by funding the largest amount to foreign investors, it's better to take that with a grain of salt.

2 mins read
U.S. Ambassador to Sri Lanka Julie Chung, DFC Chief Executive Officer (CEO) Scott Nathan, and Gautam Adani, Chairperson of Adani Group [ Sri Lanka Guardian Illustration]


The recent developments involving the United States and Sri Lanka have raised questions that demand a closer look at the real intentions behind a massive financial investment of $553 million in the Port of Colombo. What appears to be a generous economic gesture on the surface carries with it a multitude of concerns, casting a shadow over the sincerity of the United States in its dealings with the island nation. Two press releases from the US Embassy in Colombo on the event have left us astounded.

They are lavishing praise on “private sector investment in Sri Lanka” while partnering with the Adani Group, an Indian corporation, to develop “critical infrastructure” in the Port of Colombo. This raises the question: Why has the United States decided to invest such an astronomical sum in a project helmed by an Indian company, leaving us to ponder its impact on Sri Lanka’s economy and sovereignty?

Sri Lanka had been striving to secure a $330 million IMF loan for years, going through rigorous negotiations and discussions. Suddenly, the United States stepped in, offering more than half a billion dollars for the Port of Colombo project run by a foreign entity that initially boasted of being the biggest foreign direct investor in Sri Lanka. They provided vague justifications about “critical infrastructure.” The ambiguity surrounding this colossal investment raises suspicions about hidden agendas and potential implications for the Indo-Pacific region.

What caused the once-celebrated largest Foreign Direct Investor to suddenly require a significant loan from the US government to fund the majority of the project’s costs, and why was it essential for them to take this unconventional borrowing route through the backyard to ensure the successful completion of the project?

On the other hand, what is meant by “critical infrastructure”? Is this financial facility truly aimed at improving the lives of the Sri Lankan people and advancing the country’s development, or does it harbour ulterior motives, including facilitating military activities in the region? The lack of transparency surrounding this investment necessitates a thorough examination of its implications. Sri Lanka cannot be satisfied with the vague explanation of financing for “critical infrastructure” to create more jobs for Sri Lanka and boost the national economy.

Interestingly, President Ranil Wickremesinghe has been forthright in expressing his concerns about military alliances such as AKUS in the Indo-Pacific, emphasizing the need for peace in the region. He has highlighted China’s vital role in maintaining the global supply chain. The United States’ involvement in the region must be scrutinized to understand its potential impact on Sri Lanka’s economy and regional stability, despite all the rosy rhetoric they espouse and the narratives they promote through pro-US media.

Furthermore, the allegations of Ambassador Chung’s interference in Sri Lanka’s internal affairs have raised serious concerns. Her involvement through social media and support from local groups allegedly under the U.S. payroll hints at covert manoeuvring by the United States. President Wickremesinghe’s courageous stance against external interference underscores the importance of safeguarding Sri Lanka’s sovereignty and regional peace.

In this context, the recent financial infusion by the United States into the Port of Colombo project merits deeper scrutiny. Beneath the facade of economic aid lies a complex web of concerns and geopolitical intrigue. Sri Lanka must be unwavering in its commitment to safeguard its sovereignty and interests and ensure that foreign investments genuinely benefit its economy, job creation, and regional stability. The nation should tread cautiously and maintain a balanced approach in its relations with global powers, ensuring its future remains secure in the face of hidden agendas.

So, when Ambassador Chung and her masters overwhelmingly brag about job creation and strengthening the national economy by funding the largest amount to foreign investors, it’s better to take that with a grain of salt. What is important is that Sri Lanka’s resilience and vigilance will be crucial in navigating these uncertain waters.

Sri Lanka Guardian

The Sri Lanka Guardian is an online web portal founded in August 2007 by a group of concerned Sri Lankan citizens including journalists, activists, academics and retired civil servants. We are independent and non-profit. Email: editor@slguardian.org

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