A Global Conglomerate with Expanding Footprints
The Adani Group, one of India’s largest multinational conglomerates, has steadily expanded its presence across sectors ranging from ports and logistics to energy and infrastructure. Its ventures abroad—particularly in strategic regions like the Indian Ocean—have elevated its role not only as a business powerhouse but also as a stakeholder in broader geopolitical dynamics. In Sri Lanka, the group’s investments underline this dual identity of commercial expansion and regional influence.
Colombo Terminal: Doubling Capacity Before Deadline
The $840 million Colombo West International Terminal, jointly developed by Adani Ports, John Keells Holdings, and the Sri Lanka Ports Authority, is on track to double its handling capacity well before its deadline. According to John Keells’ transportation chief, Zafir Hashim, the second and final phase of construction will conclude by late 2026—months ahead of the official February 2027 schedule.
When complete, the deep-water, fully automated terminal will process up to 3.2 million containers annually, significantly boosting Colombo’s throughput. For Sri Lanka, still grappling with the aftershocks of a crippling financial crisis, the early completion offers both an economic boost and a strategic win.
Strategic Significance Amid Regional Rivalries
The terminal is situated next to a facility run by China Merchants Port Holdings, placing it at the heart of a subtle but intense competition between New Delhi and Beijing for influence in the Indian Ocean. With the majority of cargo flowing through the Adani-led terminal originating in India, the project has clear strategic undertones. It strengthens India’s logistical reach while offering Sri Lanka diversification in foreign partnerships.
The progress is notable given the turbulence surrounding financing. Adani Ports, which holds a 51% stake in the terminal, withdrew a request for $553 million from the U.S. International Development Finance Corp in December. Instead, the group opted to fund the venture through internal accruals and a capital management plan.
This move followed allegations from U.S. authorities implicating Adani Group Chairman Gautam Adani in a bribery scheme—charges the conglomerate firmly rejected. Despite the controversy, local partner John Keells has expressed confidence in Adani’s reliability, calling them a “very good partner to work with.”
Renewable Energy Investments: A Mixed Record
While the port project advances smoothly, Adani’s renewable energy foray in Sri Lanka has seen twists. Earlier this year, the group withdrew from two wind power projects worth $1 billion, after the new government led by President Anura Kumara Dissanayake sought to renegotiate power tariffs.
Although concerns over transparency and environmental impact added pressure, officials clarified that negotiations broke down primarily over pricing. Nonetheless, Sri Lanka’s energy ministry has confirmed that Adani later purchased bid documents for smaller renewable projects, signaling continued interest even if no bids were submitted.
The Broader Implications
For Sri Lanka, Adani’s investments are more than corporate deals—they represent avenues to attract much-needed capital, revive infrastructure, and balance foreign influence. For India, the Colombo terminal consolidates its role in critical shipping lanes while countering China’s presence.
Adani’s ability to deliver infrastructure ahead of deadlines also burnishes its credentials as a global developer capable of managing complex, politically sensitive projects. At the same time, setbacks in renewable ventures highlight the delicate interplay between business expectations and sovereign decision-making.
A Test Case for Regional Partnerships
The Colombo West International Terminal stands as a powerful example of how private capital intersects with geopolitics in South Asia. For Adani Group, the project reaffirms its international ambitions, blending business with strategic impact. For Sri Lanka, it offers a much-needed anchor of stability in a period of financial fragility.
If completed on time as promised, the port could become a model for how regional partnerships, despite controversies and shifting political landscapes, can create shared economic and strategic value. In many ways, the Colombo project may serve as a test case for how India and its corporate champions engage with neighboring economies in the shadow of global rivalries.
(With agency inputs)
