The International Finance Corporation (IFC), a member of the World Bank Group, has proposed an investment of up to $20 million in Sri Lanka-headquartered South Asia Gateway Terminals (SAGT) to fund the acquisition of new ship-to-shore cranes, according to an IFC disclosure.
The proposed investment may include financing under IFC’s Managed Co-Lending Portfolio Program (MCPP), with the remaining portion expected to be provided by a parallel lender.
IFC said the crane upgrades are expected to enhance SAGT’s competitiveness and productivity while reducing fuel consumption and emissions.
SAGT operates an international container terminal at the Port of Colombo under a 30-year build-operate-transfer (BOT) concession awarded in 1999 by the Sri Lanka Ports Authority (SLPA). SAGT serves as a major transshipment hub for South Asia serving India, Bangladesh, Pakistan, and the Maldives.
IFC was among the original financiers of the project, extending a $35-million loan and making a $7.3-million equity investment at the time.
SAGT’s shareholders include John Keells Holdings PLC (42.19%), Maersk B.V. (26.25%), APM Terminals B.V. (6.56%), the Sri Lanka Ports Authority (15%), and Peony Investment S.A. (10%).
Beyond the project, the investment is expected to strengthen the competitiveness of Sri Lanka’s maritime industry by supporting the Port of Colombo’s regional and global trade integration. The project is also expected to improve sector sustainability by expanding access to sustainable finance, IFC said.
Among IFC’s recent proposals in Sri Lanka is a planned investment of up to $40 million in CBL Investments Limited (CBLI), the holding company of Sri Lanka-headquartered food manufacturing conglomerate The CBL Group.
Very recently, IFC also announced an investment programme of $166 million to support Sri Lankan businesses and accelerate the country’s transition from economic stabilisation to sustainable growth. The comprehensive country-level financing package aims to expand financial access for small and medium-sized enterprises (SMEs), with a focus on empowering women-owned businesses and the agri-business sector.
