(ConservativeHub.com) – On Wednesday, November 8, the United States unveiled a $553 million project for the construction of a shipping container terminal in Sri Lanka. The new infrastructure would help the area which is in competition with China in international development financing.
NBC News reported that as established by the US International Development Finance Corp (DFC), the project intends to provide a South Asian nation with critical infrastructure that could potentially allow the country’s transformation into a “world-class logistics hub.” It is at a key intersection of emerging markets and shipping routes.
The DFC is going to provide the loan for the construction of the West Container Terminal which will allow for an expansion of the terminal’s shipping capacity and will help increase prosperity in Sri Lanka. According to NBC News, Chief Executive Officer Scott Nathan noted that the DFC loan is not going to result in additional sovereign debt.
Nathan said that the funding would help make the position of the US’s allies stronger.
The announcement was made after it was noted previously that Sri Lanka was having a hard time recovering from the economic and financial crisis. The Port of Colombo has been working close to its capacity since 2021, according to the DFC. The new terminal is going to help cater to the Bay of Bengal’s developing economies.
The direct loan from the DFC will be made available to the consortium that is in charge of the terminal development. This is owned in its majority, 51 percent, by Adani Ports & Special Economic Zones Ltd., which is India’s largest port operator. Other partners include Sri Lanka’s John Keells Holdings with 34 percent, and a final 15 percent which is owned by the Sri Lanka Ports Authority.
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