The U.S. International Development Finance Corporation (DFC) has announced a $553 million investment in the Adani Ports-led container terminal project in Colombo, less than a year after American financial research firm Hindenburg accused the Adani Group of pulling the “largest con in corporate history”.Addressing a media conference in Colombo on Wednesday, the DFC’s Chief Executive Officer Scott Nathan said the Corporation seeks to drive private-sector investments that “advance development and economic growth while strengthening the strategic positions of our partners.” The DFC has pledged $1 billion to Sri Lanka, the second highest in the region, following India. The investment in the new terminal is aimed at catering to growing economies in the region, by taking advantage of Sri Lanka’s prime location along major shipping routes, according to American officials.

The West Container Terminal is “so impressive”, CEO Nathan remarked, after visiting the facility under construction at the Colombo Port earlier on Wednesday. In September 2021, Adani Ports signed a $700-million deal with the Sri Lanka Ports Authority (SLPA) and Sri Lankan conglomerate John Keells Holdings, to jointly develop the terminal.

The move followed an abrupt decision by former President Gotabaya Rajapaksa — he was ousted from power by a people’s uprising during last year’s economic meltdown — to eject the governments of India and Japan out of the East Container Terminal project at the same port. His government said the West terminal was offered to India as “a compromise”, and that Adani Ports was brought in as New Delhi’s “nominee”.Subsequently, the Colombo West International Terminal Pvt. Ltd was set up as a consortium comprising Adani Ports, John Keells Holdings and SLPA, to execute the project in a Build-Operate-Transfer arrangement spanning 35 years.  Adani Ports holds 51% stakes.