- Sri Lanka not concerned as Adani is ‘very strong’ in port business
Sri Lanka is not concerned about the construction of the Western Container Terminal (WCT) at Colombo Port following the Adani Group crisis that has resulted in the conglomerate losing over $ 110 billion, Sri Lankan High Commissioner to India Milinda Moragoda said.
Speaking to WION last Saturday (4), he said that Sri Lanka is not concerned so far about the WCT project undertaken by the Adani Group, as the conglomerate is “very strong in that particular sector”.
THe Construction of the WCT, as a Build-Operate-Transfer (BOT) project, began in November last year, undertaken by India’s Adani Group and its local partner John Keells Holdings, together with Sri Lanka Ports Authority (SLPA), with an investment of over $ 700 million.
The terminal is set to be developed on a 35-year build, operate, and transfer (BOT) basis with the aforementioned stakeholders.
Moragoda said that 80% of the business done by the Colombo Port is transhipment business of which 70% goes to India, and 35% of that goes to Adani Ports.
“So from a business point of view, it’s a perfect fit,” he added.
Adani Ports and Special Economic Zone is the largest port developer and operator in India, with six strategically located ports and terminals on the West coast and the East coast of India representing 24% of the country’s total port capacity, thus providing capabilities to handle vast amounts of cargo from both coastal areas and the hinterland.
The Adani Group crisis was triggered by the US-based short-seller Hindenburg Research, which accused the Adani Group of stock manipulation, unsustainable debt, and use of tax havens.
As of yesterday (6), the conglomerate’s cumulative market value loss topped $ 110 billion, with Adani shares in freefall.