The International Finance Corporation (IFC), a member of the World Bank Group, and HSBC have committed up to US$40 million in financing to modernise operations at the Port of Colombo, in a package aimed at improving both competitiveness and environmental performance.
The funding will flow to South Asia Gateway Terminals (SAGT), one of the container terminal operators at the port, to support sustainability-focused upgrades and more efficient handling of cargo. The investment is structured as green financing, tied to measures that reduce the terminal’s carbon footprint and energy use.
The Port of Colombo is the busiest container hub in South Asia and a key transhipment gateway for the region, handling volumes that far exceed Sri Lanka’s own trade needs. Backers say improving the port’s efficiency and green credentials is central to keeping it competitive against rival hubs in the Indian Ocean.
The IFC has increasingly channelled financing into Sri Lankan infrastructure and clean-energy projects as the country rebuilds investor confidence following its economic crisis. HSBC’s participation adds commercial banking weight to the transaction.
Officials framed the deal as a signal that multilateral and private lenders remain willing to back well-run Sri Lankan assets, with the port positioned as a showcase for sustainable trade infrastructure.
