The U.S. International Development Finance Corporation (DFC) has issued a statement addressing concerns raised in a report published yesterday by the Sri Lanka Guardian regarding the Colombo West International Terminal (CWIT) project. The response comes amid heightened scrutiny, driven by ongoing investigations into Adani by U.S. authorities.
In its statement, the DFC clarified its position on the matter, emphasising its commitment to transparency and compliance with legal standards. “We noticed your recent reporting on the Colombo West International Terminal and want to provide you with the following to help clarify,” the statement begins.
The DFC outlined its awareness of the allegations against Adani, but noted that it defers to the relevant U.S. authorities for any law enforcement matters. “The Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) are the lead agencies for investigating and enforcing laws related to the recent allegations concerning Adani,” the DFC said. “We defer to these agencies for any law enforcement matters and related issues.”
The DFC further explained its involvement in the Colombo West International Terminal project, which includes a $553 million loan commitment made in 2023. The loan supports the development, construction, and operation of a deepwater container terminal at the Port of Colombo in Sri Lanka. “In 2023, the U.S. International Development Finance Corporation (DFC) committed a $553 million loan to support development, construction, and operation of a deepwater container terminal at the Port of Colombo in Sri Lanka,” the DFC stated. “The financing was committed to the Colombo West International Terminal (CWIT), a consortium including Sri Lankan conglomerate, John Keells Holdings, the Sri Lankan Port Authority (SLPA), and India’s largest port operator, Adani Ports & Special Economic Zones Limited (‘APSEZ’).”
Despite the loan approval, the DFC emphasised that no funds have been disbursed thus far. “While DFC approved the transaction in 2023, no funds have been disbursed and we are continuing to assess the situation,” the statement read.
The DFC further highlighted the importance of the CWIT project for Sri Lanka’s economic development. “The Colombo West International Terminal (CWIT) is anticipated to enhance regional connectivity and trade, strengthening Sri Lanka’s strategic position as a global logistics hub. DFC has identified the project as highly developmental due to its significant benefits to Sri Lanka’s local economy,” the corporation noted.
The DFC also acknowledged the ongoing investigations into Adani, stating that it is closely monitoring the situation. “DFC is aware of the recent allegations related to Adani and is actively assessing the ramifications in light of the recent DOJ announcement,” the statement continued. “We are committed to ensuring that our projects and partners uphold the highest standards of integrity and compliance.”
The statement concluded with a reaffirmation of DFC’s commitment to ensuring that its investments support high standards of governance and compliance with all relevant laws and regulations.
