Adani Boosts Sri Lanka's FDI with Colombo Terminal Investment

The Colombo West International Terminal (CWIT) has made headlines as Sri Lanka's largest contributor to foreign direct investment (FDI) during the first nine months of 2025. With a substantial investment of USD 229 million, made by Adani International Port Holdings in collaboration with local entity John Keells Holdings, the CWIT is set to enhance the country's port infrastructure significantly.

This investment is not just a financial boost; it symbolizes a renewed confidence among investors in Sri Lanka's business environment. According to the Board of Investment (BOI), total FDI inflows, including foreign commercial loans, have reached an impressive USD 827 million during this period. This marks a remarkable 138 percent increase compared to the same timeframe in 2024.

The CWIT's investment focuses on developing state-of-the-art port facilities that will expand the port's capacity by an additional 3.2 million twenty-foot equivalent units (TEUs). This expansion is crucial for reinforcing Colombo's position as a key transshipment hub in South Asia, facilitating increased trade and economic activity in the region.

The BOI provided a detailed breakdown of the investment inflow, which includes equity capital of USD 133 million, reinvested retained earnings of USD 132 million, intra-company foreign borrowings of USD 231 million, and long-term foreign commercial loans amounting to USD 331 million. Of the total inflows, USD 124 million was secured through project agreements signed with the BOI in 2025, while the remainder was generated from reinvestments and expansions by existing enterprises.

Arjuna Herath, the chair of the BOI, highlighted that the growth in foreign capital inflows to USD 827 million demonstrates the renewed confidence investors have in Sri Lanka's business landscape. He emphasized that both new and existing projects have played a significant role in this impressive performance, underscoring the positive impact of government reforms and initiatives aimed at easing business operations in the country.

In conclusion, the investment by Adani in the CWIT is a game-changer for Sri Lanka. It not only boosts the economy but also positions the country as a competitive player in regional trade. As the government continues to implement reforms and improve the business environment, Sri Lanka is poised for further growth and investment in the future.