InvestorQ : Can you tell me about the latest plans of Adani Ports in Sri Lanka?
vidhya Laxmi made post

Can you tell me about the latest plans of Adani Ports in Sri Lanka?

sarah Leo answered.
1 year ago

Adani Ports and SEZ, part of the Gautam Adani group, will closely collaborate with the Sri Lanka based John Keells Holdings to develop a port terminal in Sri Lanka. Adani Ports SEZ Ltd has already received the letter of intent or LOI to build and operate the West Container Terminal of Colombo Port for a period of 35 years.

The total project is estimated at $750 million and it also marks the first major foray of Adani Ports outside of India. It is already the largest operator in India and hence brings to the table deep experience in efficient port operations. Adani Ports SEZ currently operates 12 ports in India and commands 30% share of the Indian port market. The port terminal will have quay length of 1,400 meters and depth of 20 meters. Adani SEZ will hold 51% of the venture.

This is relevant because in recent times, Sri Lanka leaned heavily on China especially for the port related activities. For example, Sri Lanka has always been worried that it may end up paying a huge price for giving the Hambantota port contract to China, which has almost led to China taking over the port. There now clearly appears to be a more favourable disposition that Sri Lanka has shown to do business with India.