Colombo Port Secures $40M for Modernization & Decarbonization

Colombo, Jul 20 (PTI) World Bank Group member International Finance Corporation (IFC) and HSBC bank will invest up to USD 40 million to modernise and decarbonise operations at the Port of Colombo, Sri Lankan officials said on Monday.

"The investment will advance the port's competitiveness, resilience and sustainability, reinforcing its position as South Asia's leading transhipment hub and deepening Sri Lanka's connectivity to global markets," according to an official release.

The financing package of up to USD 40 million comprises a sustainability-linked loan of up to USD 20 million from IFC, including up to USD 8.57 million mobilised through the corporation's Managed Co-Lending Portfolio Programme (MCPP), and a parallel green loan of up to USD 20 million from HSBC.

The proceeds will be used to fund advanced twin-lift ship-to-shore cranes that will increase productivity, improve operational reliability and reduce energy use.


It will enable the port's South Asia Gateway Terminal (SAGT) to meet growing trade demands with faster, more efficient services to global shipping lines, the release said.

SAGT is Sri Lanka's first private-public partnership container terminal.

The investment is expected to raise quay-side productivity by at least 11 per cent, expanding the port's capacity to handle both transhipment and domestic container traffic.

It is also expected to reduce the port's carbon footprint, create jobs and expand opportunities for women in a maritime sector, where they remain significantly underrepresented, the release said.