Adani Ports and Special Economic Zone Ltd (APSEZ) has officially started operations at the Colombo West International Terminal (CWIT) in Sri Lanka.
On the surface, it looks like a big win — a brand-new terminal, deep waters, shiny tech and promises of better shipping traffic.
But scratch that surface and there’s a far more layered story underneath — involving political pressures, funding controversies, and regional power plays.
The Colombo West International Terminal is now open for business. It’s part of the Port of Colombo, one of South Asia’s busiest transshipment hubs, and the new terminal is being pitched as a game-changer for the region’s logistics scene.
Developed under a 35-year Build, Operate and Transfer agreement, CWIT is being run by a consortium that includes India’s Adani Ports, Sri Lankan conglomerate John Keells Holdings, and the Sri Lanka Ports Authority. Together, they’ve pumped in around $700–800 million (that’s roughly ₹6,000–₹6,700 crore) into the project.
The facility comes with a 1,400-metre-long quay and 20-metre depth, allowing it to host some of the world’s largest cargo vessels.
It’s also Colombo’s first fully automated deep-water terminal, reportedly capable of handling around 3.2 million containers (or TEUs) annually.
Adani’s entry into Sri Lanka wasn’t all smooth sailing. The original award of the West Terminal project in 2021 stirred quite a bit of debate. Many in Sri Lanka’s opposition, as well as civil society groups, questioned how the deal came through — with some alleging that New Delhi had applied “external pressure” to secure the project for the Adani Group.
The criticism wasn’t just about foreign influence. Some voices flagged concerns over transparency, claiming that the terminal contract was handed over without a proper competitive process. The Sri Lankan government maintained that it was a strategic partnership, and that the terminal was a critical infrastructure need, especially with increasing shipping traffic in the Indian Ocean.
To add to the drama, in 2023, Adani applied for a $553 million loan from the US International Development Finance Corporation (DFC) to fund the terminal. But by December 2024, the company withdrew its request. The move came amid ongoing international scrutiny of the Adani Group, following allegations of stock manipulation and corporate governance lapses — all of which the group has denied.
Though the official reason for the loan pullback was listed as “capital management”, observers believe the decision may have been influenced by political optics and reputational concerns around US-backed funding. Eventually, the company said it would finance the terminal through internal resources.
Despite all the turbulence in the background, the project seems to have stayed on track. Construction began in early 2022, and within three years, CWIT is now operational. Early signs suggest that the infrastructure is largely in place — including modern cranes, container tracking systems, and support facilities.
It’s too early to say how smoothly operations will run, or what the actual impact will be on shipping volumes. But on paper, the terminal is expected to give Colombo Port a serious upgrade, helping it compete with the likes of Singapore and Dubai for transshipment business.
While no one’s calling it a diplomatic victory outright, many see CWIT as India’s strategic play in its ongoing tug-of-war with China in the Indian Ocean. China already operates the nearby Hambantota Port, which Sri Lanka had to lease out after struggling with debt repayment. India, through Adani, now has a foot in the door — and a big one at that.
For Sri Lanka, this partnership could help it balance its foreign relations and possibly ease some of its economic pressures — but it also opens up the country to deeper geopolitical entanglements. Whether that proves beneficial or risky remains to be seen.
