US plans to build a $553 million terminal at Sri Lanka's Colombo port in rivalry with China

abcnews.go.com:

The U.S. plans to launch a $553 million project to build a deep-water shipping container terminal in Sri Lanka as it competes with China in development financing

COLOMBO, Sri Lanka — The U.S. announced a $553 million project Wednesday to build a deep-water shipping container terminal in Sri Lanka's Port of Colombo as it competes with China in international development financing.

The project is billed as providing critical infrastructure for the South Asian nation with the potential to “transform Colombo into a world-class logistics hub at the intersection of major shipping routes and emerging markets," according to the U.S. International Development Finance Corp.

The DFC loan of $553 million for the West Container Terminal will “expand its shipping capacity, creating greater prosperity for Sri Lanka — without adding to sovereign debt — while at the same strengthening the position of our allies across the region,” said DFC Chief Executive Officer Scott Nathan.

The announcement comes as Sri Lanka is struggling to recover from a dire financial and economic crisis.

The Port of Colombo has been operating near its capacity since 2021, and the new terminal will cater to growing economies in the Bay of Bengal, the DFC said.

The DFC will make a direct loan to the consortium developing the terminal, which is 51% owned by India's largest port operator, Adani Ports & Special Economic Zones Ltd. The other partners are Sri Lanka's John Keells Holdings, which has a 34% share, and the Sri Lanka Ports Authority with the remaining 15%.

Nathan said that with the loan, Sri Lanka will be the “2nd biggest exposure” for his institution in the Indo-Pacific region, after India.

“It's high priority for the United States to be active in the